BFK - for exempting farm animal health and agricultural machinery insurance contracts
On Wednesday, the Parliament's Budget and Finance Committee (BFK) approved proposals to exempt farm animal health and insurance contracts for agricultural machinery used in agricultural activities from taxation.The Committee took this decision by a one-vote majority, after considering proposals put forward by social democrat Matas Skamarakas.
Earlier, the BFC had agreed not to tax only crop insurance contracts.
The Security Contribution Bill in the Government's tax reform package provides for a 10% rate of taxation on all non-life insurance contracts, except for third party liability insurance for private cars.
The tax would apply to contracts concluded, renewed or modified as from 1 January 2026 if a contract concluded before the date of entry into force of the Security Contribution Law is modified after its entry into force, and if this involves a new premium.
The full tax package will be debated by the Seimas on Thursday, with adoption scheduled for next week.
