Farmers to protest against tax reform at the Seimas, meet the Prime Minister
On Thursday, part of the farming community is gathering in Vilnius, in front of the Seimas, to protest against the ongoing tax reform. The warning picket is organised by the Lithuanian Association of Grain Growers in cooperation with the Agricultural Council and the Farmers' Union. Their representatives say that more than a thousand participants and more than half a hundred tractors will gather in Independence Square.
The organisers of the protest are expressing their dissatisfaction with the centre-left government's proposed changes to the laws on Personal Income Tax (PIT), State Social Insurance (SSI), and the taxation of roads.
These amendments, they say, would undermine the competitiveness of farmers and make transporting produce extremely expensive for some of them.
He said that farmers are missing dialogue and politicians' reactions to their proposals when discussing tax changes.
The association led by Vanagos, as well as the leaders of the Agricultural Council, the Farmers' Union and the organisations uniting poultry farmers, agricultural companies and meat processors, will meet on Thursday afternoon with Prime Minister Gintautas Palucas and his team, as well as with Minister of Agriculture Ignas Hofmann.
„The Prime Minister will once again listen to the arguments, exchange views, and I have no doubt that balanced solutions will be found“, – Justinas Argustas, advisor to the Prime Minister, said in a commentary to BNS.
At the same time, I. Hofmanas assured reporters on Wednesday that he would come to the protest to talk to the farmers.
Last January, when he was the head of the Council of Agriculture, Mr Hofman was the organiser of a similar action outside the Seimas. At the time, the demands were for the resignation of the Conservative Agriculture Minister, respect for private property and the expansion of protected areas only after proper consultation with the owners, and a solution to the problems of perennial grassland and the dairy crisis.
The Lithuanian Union of Young Farmers and Youth announced its withdrawal from this year's campaign on Wednesday. It said the organisers of the campaign are only defending the interests of big farmers, which are not related to the "real problems of the countryside".
A. Vanagas assured that this picket was not coordinated with the organisers of the protest against the changes in the real estate tax, which took place last week in front of the Seimas.
As BNS wrote, the Seimas is discussing the government's initiative to increase the progressivity of the GPT by introducing a new 25% rate in addition to the 20% (up to 36 VDU) and 32% (above 60 VDU) rates. The new new rate of progressivity (from 36 to 60 VDU) will be introduced for all types of income, except for dividends and royalties, sickness, maternity, paternity, parental, childcare and long-term employment benefits, income from the sale of shares acquired more than five years ago, the expiry of a life insurance contract or its cancellation, and a benefit received from a pension fund. This income would be subject to a 15% tax rate. The rate of GPT would apply.
The vote on the adoption of the changes to the GPT and property taxes in the Seimas was due to take place on Thursday, but it has been postponed until next week, after St John's Day.
On Tuesday, MPs approved changes to the increase in corporation tax, the taxation of non-life insurance contracts and sugary drinks, the abolition of the value-added tax (VAT) exemption for heating and the increase in the reduced VAT rate from 9% to 12%.
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