Farmers to protest against tax reform - warning picket

As the Parliament continues its deliberations on the tax changes, a part of the farming community is preparing to protest against the tax adjustments being considered by politicians.

A warning picket by the Lithuanian Association of Cereal Growers and other farmers' organisations will take place on Thursday in front of the Parliament.

„The warning protest will take place at the same time as tax laws are being passed. We want to say that we are surprised and shocked that we are not being spoken to again. We made proposals for the tax system, we talked to the groups in the Seimas, but it was just talk," Audrius Vanagas, chairman of the Lithuanian Grain Growers Association, told reporters on Monday.

„There is a lot of dissatisfaction in the community. As a result, the association is initiating a protest action“, – he said.

Organisers say the tax changes currently being considered in Parliament may be unbearable for some in the farming community, and for some the increase in the tax burden could be close to or exceed 100%. 

The protest organisers are expressing their dissatisfaction with the changes to the personal income tax (PIT), the law on state social insurance (SSD), and the taxation of roads.

According to Vanagos, the adoption of the Government's proposed changes to the GPT would drastically increase the tax burden and affect the competitiveness of farmers.

He said that farmers' representatives are proposing to increase the VAT on those earning 60 average wages (AWW) to 20% instead of the 25% proposed by the Government and discussed by the Seimas. At the same time, a 15% tax rate is proposed for incomes up to 60 GNI. 

„We have been consistent with this proposal and have actually gone through all the groups and said so, but it has not been heard“, – said Mr Vanag.

The head of the Association of Grain Growers also said that the organisers of the protests are demanding that they should be subjected to the GPT on the basis of the average of their taxable income over three years, as farmers' incomes fluctuate from year to year due to natural conditions and market fluctuations.

„One year it may be high and the next year it may be negative. What we are saying is that we have to pay on a real average should. Very little depends on us. We depend on many other things,“, – said Mr Vanag.

The protest on Thursday is expected to attract 500 participants with 100 tractors.