Kaunas PPAR meeting with Skvernel and Savick – Tax questions

Business on taxes

Kaunas Chamber of Commerce, Industry and Crafts (PPAR) unites about 1 thousand. Businesses with about 60 thousand. therefore, representing a large business community, held a meeting with the Speaker of the Seimas S. Skvernelis and the Minister of Economics and Innovation L. Savick to discuss the planned tax reform.

Entrepreneurs are open – some of the changes can be painfully crossed by businesses, especially those creating high value -added products, so some of them will look for a shelter in foreign countries. At the same time, jobs and slow economy will decrease, so tax reform can even give the opposite effect – millions will be lost instead of collecting more money into the country’s budget.

« We believe that every resident must contribute to the most important need for the state today – the country’s security and defense.

The rise of the PIT rate will aggravate the maintenance and attracting specialists, especially those with high qualifications. It can also cause business transfer to other countries. Will also affect residents when they will be paid again for their accumulated and paid assets, ”said Zigmantas Dargevičius, President of Kaunas PPAR.

Kaunas PPAR members took the position that work and other income should be separated and, at the same time, taxed differently.

Relevant: at the meeting, Kaunas businessmen expressed the position on tax reform and accessibility of capital. / Photo by Regimantas Zakšensk

The intended real estate (real estate) taxes do not have comments, as such a tax has been introduced in many parts of the world and it really allows the country to replenish the country’s budget, but raising income tax can already cause major problems.

« If the income tax rate was only raised last year, everything would be understood, but after increasing last year, this year is getting ready to increase it this year. a qualification worker who can work in a distance from any country in the world, ”said Z. Dargevičius.

Another tax offered by the Government is the insurance fee. It would apply to all insurance contracts except compulsory drivers’ civil liability insurance. Kaunas PPAR members are convinced that this fee will not work, as businesses and residents who are responsibly looking at their property will have to pay more and do not insure – in the event of a disaster, the state will be more likely to apply to the state to help compensate for damage, which will be more expensive than several additional millions.

We believe that every resident must contribute to the security and defense of the country.

It’s not too late to discuss

Speaker of the Seimas S. Skvernelis stated during the meeting with Kaunas businessmen that there would certainly be tax transformation, but it is now possible to discuss, propose exceptions or changes in the Seimas.

« There is a responsibility for the actions taken. Our job is to hear all directions and make decisions that would give the best effect, but at the same time do the least damage to the economy, » Skvernel said.

He explained that VAT changes were opposed by the great coalition partners and president, so that certain social inequalities have emerged in the current tax reform package.

« Real estate taxes really need to be made to expand the existing fee to free up the funds of the economic resuscitation fund. Of course, the municipalities are now pushed into a certain dual situation where they will be able to set the boundaries themselves and depend on how much they will be in their budget. disasters, I think this tax should be abandoned, ”said the Speaker of the Seimas.

He agreed that there are interpretations for the PIT tax so far. Some understand that the total income should be calculated on regular income, ie from pay and individual activities, but it would not have been included in this income if the person sells something and instant income.

« You really don’t want to vote for anything, so our suggestions have come up with both real estate and insurance tax exemptions. Definitely tax reform will not be the light process when everyone will agree on everything. And greater benefits, ”says Skvernel.

Ministerial position

Minister of Economics and Innovation, L. Savickas, noted that cooperation with business is very important.

« It is important for us to grow the economy and maintain business competitiveness, so we have already equalized the conditions for foreign capital and local companies to encourage investment. Bureaucracy is already being reduced, funding and various permits procedures are being reduced.

When it comes to taxes, the Minister said that if there was a task to finance the defense, one must look for where to take the money from. For this purpose, it is possible to borrow, to continue to promote economic growth and to allocate a certain percentage of income from income.

« We still need to look for other sources, tax changes that will not stop growth but create new income. We seek to seek balance. One thing we have already changed is to give up the proposed 36 % of the PPM tax on the highest earnings. Minister.

Other important issues

The Kaunas business community stated that, in addition to tax changes, there are more important issues. Businesses are concerned with both shadow reduction and capital access or employee search, including citizens of other countries.

Businesses lack not only highly qualified but also lower -skilled workers. Kaunas PPAR members claimed that such employees could look for such employees in foreign countries, but the state must make it clear what countries to invite and employ people. It is worth investing in attracting students and students to gain education in Lithuania and then create value here.

Entrepreneurs also listed the problems from Ilte to get funding, suggesting that business guarantee to business – this would deal with the lack of working capital. Emphasized the creation of a state commercial credit insurance system. This would be a real help to promoting business and risk reduction – this system is operating in neighboring countries.

It is about business support programs and limited opportunities to use them, as some industries want to automate production, but then support is not provided because workplaces are destroyed, others are also prevented by the number of employees and the fact that the company has no profit yet. Attention was drawn to the full participation of business in the regional development councils with the voting rights.

The Minister of Economics and Innovation stated that the recruitment of foreigners was just a new bill to seek talent, and that Ilte’s funding opportunities also promised to look for ways to get the business easier.