Whether to restrict the VAT relief to farmers' agricultural income will be clarified

On Tuesday, the Seimas is due to take a final decision on whether to adjust the personal income tax (PIT) exemption for farmers, adopted in June, so that from next year it applies only to income from agricultural activities.

The current arrangements provide for tax rates on farmers' income without specifying whether it must be derived from agricultural activities. 

With the amendments, the 15 and 20 per cent tax rates will be set at 15 and 20 per cent respectively. The 20/20 and 20/20 rates would apply only to income from agricultural activities, including income from the sale of related assets. 

BNS wrote that the aim is to exclude people who do not receive income from agriculture, but only those with a farmer's certificate. These amendments to the VAT law were approved by the Seimas in October after submission and by the government in November.

As BNS wrote, after farmers expressed their dissatisfaction with the tax changes being discussed in the Seimas, the Parliament agreed in June that all those who have a farmer's certificate, but are not necessarily engaged in farming, would be taxed at 15% and 20%. The rates of GPT are also higher than the rates for farmers who are farmers.