Covid-19, Financial Services, Lithuania, Markets and Companies

International Internet Magazine. Baltic States news & analytics Monday, 25.01.2021, 06:00

Lithuania sets revenue loss threshold for business support eligibility at 30%

BC, Riga , 25.11.2020.Print version
Businesses in Lithuania that lost at least 30% of their revenue this year will be eligible for new state support as of January, the government decided on Wednesday, writes LETA/BNS.

All small and medium-sized enterprises are likely to receive subsidies based on the amount of personal income tax they paid last year, but the government is to decide on the exact proportion next week.

Support will be available to businesses whose average revenue decreased at least by 30% in March-October 2020 compared to the same period last year, according to the government.   

Outgoing Economy and Innovation Minister Rimantas Sinkevicius said the support scheme would likely be introduced in January, adding that its size would depend on the state's financial capacity. 

"Next year's budget is still under discussion," he said. "Today we define who could be eligible for support, and say that its size will depend on the existing financial capacity." 

Evelina Butkute-Lazdauskiene, an advisor to the minister, confirmed earlier on Wednesday that the current proposal was to give micro, small and medium-sized enterprises subsidies amounting to 25 percent of their personal income tax payments in 2019.

In the spring, micro-enterprises with up to nine employees were eligible for subsidies of 50 percent. 

Outgoing Finance Minister Vilius Sapoka told the Cabinet that the support scheme had yet to be approved by the European Commission, adding that the new government would be able to improve it.   

Sapoka told BNS on Tuesday that up to 150 mln euros would be required for paying subsidies to small and medium-sized enterprises, adding that it would be a one-off measure.

Search site