Farmers picket outside the Seimas demanding lower taxes

On Thursday, around 100 farmers gathered at the Seimas to protest against the tax reform being finalised by politicians. Most of them are gathering in the Seimas hall to watch the plenary session.

The Seimas is about to vote on amendments to the Personal Income Tax (PIT) and Real Estate Tax laws. Around 30 old tractors are lined up outside the Seimas building, some with posters „Back to a bright tomorrow“ „A. Sysas's 5-year plan for the farm – Back to the past“, and farmers in yellow vests.

Audrius Vanagas, chairman of the Lithuanian Association of Grain Growers, told BNS that the goals remain the same – to set lower personal income tax (PIT) rates than those proposed by the ruling party.  

„We will see if the farming community is important to the ruling majority at this point, because we have come with this attitude and we are showing that we have brought that (old - BNS) equipment in the way we imagine the current ruling majority sees us“ , – Vanag told BNS on Thursday.

According to him, some compromise options are possible.

„This is the proposal put forward by the honourable Kęstutis Mažeika, Matas Skamarakas and Vytautas Jucius, which is what the members of the Seimas could vote for. (...) 15% (rate – BNS) – up to 36 VDU (average wages – BNS), and from 36 VDU – 20% “, – BNS, said A. Vanagas.

According to Vanagas, when some MPs proposed to convert farms into private limited companies, most of the large farms have already been converted, and the conversion from a natural person to a legal entity takes months.

„They (large farms – BNS) have been those legal entities for a long time, and that's where the biggest burden is for those average farmers. (...) There is also the personal income tax part. Then there is the stumbling block of the tax-free part," Vanag commented to BNS.

The protest organiser says that farmers are also offering compromises, one of which is the revision of the "Sodra“ contributions".

Aistė, who runs a secondary farm in Kėdainiai district, hopes for fair taxes.

„We expect equality between businesses. We farm too and this is unfair taxation. We are not against taxes, we are in favour of taxes, but taxes should be equal and adequate. And when they say that we farmers do not pay taxes, what kind of taxes do we not pay? We pay full social insurance, compulsory health insurance, pollution taxes and personal income taxes," farmer Aistė told BNS.

Prime Minister Gintautas Paluckas says farmers are subject to a lot of exemptions and concessions, but their net taxable income should be subject to a general principle, because the source of the money does not and should not depend on how much you pay in taxes“.

„We have certainly made a number of compromises on this, but on the application of personal income tax rates we certainly will not make such a compromise, at least not by the Social Democrats and, I believe, by the majority of the coalition“, – the Prime Minister told reporters in the Seimas on Thursday ahead of the vote on taxes. 

Farmers' representatives are proposing to raise the GPT to 20% for those earning above 60 average wages (AWW), instead of the 32% proposed by the government and under consideration by the Seimas. At the same time, a 15% rate is proposed for incomes up to 60 GVA.

Parliament has already agreed on Thursday that farmers should be taxed in this way.