Budget, Financial Services, Legislation, Lithuania, Markets and Companies, Real Estate, Taxation, Transport

Kubilius said he would be in favour of the initiatives to put new taxes to avoid cutting public spending if such plans are supported by the majority of the MPs, reports LETA/ELTA.

"I have said it repeatedly that we should not be afraid of cutting expenses if we foresee some challenges in the future. But we also should not be afraid of looking for new sources of income. Yet, it is all entirely in hands of the Seimas. So far, all efforts to make decisions on real estate or cars taxes would not be fruitful at our parliament. I personally do not oppose such taxes," the head of the Government said Tuesday.

Seimas Speaker Irena Degutiene on Tuesday is applying to the Finance Ministry and the Seimas' Committee on Budget and Finance, asking to draft laws on luxury tax as soon as possible.

In the view of Degutiene, in order to balance the budget without cutting down on retirement benefits and to ensure social justice, it is necessary to introduce a luxury tax as soon as possible.

The luxury tax would involve a partial real estate tax, as well as taxing luxury goods like yachts, expensive cars, helicopters, precious stones, etc. The Seimas speaker is also asking all Committees of the Seimas to revise the budget priorities, investment projects and other lines of the budget, looking for additional measures to save money. In addition to that, she urges the Government to be more active in fight against the shadow economy.

Degutiene stresses that the stability in society is a value of no lesser importance than keeping the deficit on target. She reminds that the Greek Parliament has recently imposed a real estate tax in the country, while the International Monetary Fund recommends introducing the same tax in Lithuania as well.