Seimas gives in to farmers' demands - lowers VAT rates

Farmers, expressing their dissatisfaction with the tax changes being debated in the Seimas, on Thursday agreed to lower personal income taxes for them. 

During the discussion of the latest amendments to the Law on Personal Income Tax, MPs approved the amendments initiated by a group of members of the Committee on Rural Affairs, with 60 MPs voting in favour, 16 against and 35 abstaining. The final vote on the law will take place at a later date.

Farmers would be subject to two – 15% and 20% tax rates. The two andndash rates would be the two andndash rates of GPT, as they are demanding. Income up to 36 average wages (about €84,000) would be taxed at 15% and above that at 20%.

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