The Lithuanian Seimas opened its regular spring session on Monday with a focus on proposed tax changes to boost funding for national defence.
Lithuania’s State Defence Council declared in January that it will seek to increase defence funding by EUR 12 to 13 billion by 2030, which would raise the level to 5-6% of GDP.
Seimas speaker Saulius Skvernelis has said that MPs will consider some 400 draft laws during the spring session, including a few key decisions on national security and social policy.
One of the first tasks on Monday was a decision on whether to cancel an early mayoral election in the Jonava District which had been scheduled for March 16.
Last week the Lithuanian Supreme Court dropped a case against Mayor Mindaugas Sinkevicius, which led the Central Elections Commission to reinstate his mandate as mayor of the central Lithuanian territory.
Proposed tax reforms
Lithuania’s Finance Ministry and representatives of the country’s ruling parties have been working to find additional funds for defence, and one aspect of this is a series of proposals about tax changes.
Proposed amendments, if adopted during the spring session, would generate around EUR 224 million in additional revenues in 2026, or 0.3% of GDP.
Other laws will be needed if Lithuania is to receive planned support from the European Union’s Recovery and Resilience Facility (RRF).
The Finance Ministry has said in the past that plans are to scrap certain tax exemptions and privileges, and that there will be changes to property and personal income taxes, as well as social security contributions.
During a meeting with Seimas leadership last week, Lithuanian President Gitanas Nauseda said that the key priority will be strengthening defence, but not at the expense of social policy.
From pensions to roads
The Seimas is also expected to reform the second-pillar pension system to allow people to halt their contributions under exceptional circumstances. Thought will also be given to the possibility of extending unemployment benefits to pre-retirement age individuals.
The Seimas is also expected to amend the law on Lithuania’s road fund, with some MPs seeking increased funding for road maintenance and repairs. The government also plans to propose bills on investments, the public electricity supply, a second offshore wind farm, etc.
Plans also call for new requirements for low-emission zones in cities and towns, streamlining of the country’s environmental control procedures, expanding the powers of environmental officials to detect violations and identify offenders, as well as tightening regulations on waste prevention and management.
The spring session in Parliament is due to last until June 30.
Source: BNS
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