Seimas Committee against lower personal income tax rates for farmers than proposed

Farmers expressing their dissatisfaction with the tax changes under discussion in the Seimas, in particular the increase in personal income tax, the Parliamentary Committee on Budgets and Finance did not approve another idea to lower taxes on farmers. 

„We have already voted, do we need to vote again? No need. We are not in favour by consensus. Do we abstain? We are all abstaining," chairman Algirdas Sysas told the committee on Wednesday.  

This was his summary of the decision not to support the proposal by Social Democrat Member of the Committee on Rural Affairs Mantas Skamarakas  to apply two rates of personal income tax (PIT) to farmers: 15 % and 20 %.  

He proposed taxing income up to 36 average wages (about €84,000) at 15%, and above this threshold at 20%.  

Earlier, he had proposed a 15% tax on income up to 60 VDUs (about €138,000) and 20% above that, but this was also rejected.

„Nemunas aušros“ chairman Remigijus Žemaitaitis said on Wednesday that farmers would pay less tax if they registered private limited companies – in this case they would pay a 7 percent profit tax. 

The draft law on personal income tax, which the Seimas will decide on Thursday, foresees a 20% and 32% tax rate in addition to the current 20% and 32%. A 25 per cent step will be introduced to the current 32 per cent and 32 per cent GPT rates.