As Lithuanian politicians look for ways to raise revenue for the state budget, LRT.lt has learned that a higher value added tax (VAT), a more progressive personal income tax and an annual vehicle pollution tax were discussed at a meeting of the governing coalition’s working group last week.

“These were discussions. We talked about increasing reduced VAT rates, and the conversation led us to ask the State Tax Inspectorate to calculate the figures. We also discussed taxing the wealthiest people through personal income tax,” said Social Democrat Algirdas Sysas, chairman of the Seimas Committee on Budget and Finance.

“I don’t know what will come of it. But when it comes to GPM [Gyventojų Pajamų Mokestis, or Personal Income Tax] rates, Lithuania has the lowest rate for the wealthiest people in the European Union,” he added.

However, Seimas members Tomas Tomilinas and Aušrinė Norkienė, who sit on the committee, said that introducing such measures in Lithuania was unrealistic.

“We certainly discussed all the options, but there are no decisions,” Norkienė told LRT.lt on Monday.

Read more at: lrt.lt