Seven times a strange real estate fee – not the end yet

« Now people are waiting more and watching more, » said Ramūnas Urbonas, a member of the Board of the Lithuanian Real Estate Broker Association.

Whoever is looking for a home for investment calculates where cheaper: Lithuania or abroad.

« It is considering how much it would pay in Lithuania, how much abroad. Dubai is now popular, » said a member of the Board of the Lithuanian Real Estate Broker Association.

And young people and without tax have a bunch of worries about their dream of only housing.

« It is often not even enough for the loan to be installed, trying to take out a quick credit, a consumer loan to set up a home, » said a member of the Board of the Lithuanian Real Estate Broker Association.

And that uncertainty is not without reason. On Wednesday, the ruling coalition retreated from the proposal to tax the first home.

Full LNK Report – In Video:

« If the ruling coalition sees that the majority of the votes will be collected by such a proposal, it will support such a proposal, » said Prime Minister Gintautas Paluckas.

But by such a decision, Mr Paluck even stunned his colleagues.

« You sit in the committee, consider the project, no one says about it. After two hours you get a message – all your work is an empty matter, » Algirdas Sysas, Chairman of the Seimas Budget and Finance Committee (LSDP).

Only the Minister of Finance Rimantas Šadžius does not give up – he was surprised or not.

« There is a normal parliamentary procedure, we should not be surprised, » said Šadžius.

This is the seventh version of the real estate tax.

« My first reaction is that this is not the last version, » said Eugenijus Gentvilas, Member of the Seimas (LRLS).

« It was clear in advance that this and PIT tax would receive the most comments, » the Minister of Finance emphasized.

Eugenijus Gentvilas. Photo by P. Peleckis / BNS

In fact, the offers are not the end. The Social Democrats already offer to exempt up to 200,000 from the tax. owners of the main home or up to 400 thousand EUR. – if it is a common family property. Remigijus Žemaitaitis, leader of the Nemunas Dawn, also talks about adjustments.

« Those people who will want to be exempt from the first housing fee will have to register. Registration is not required as a unit of property itself, as registration, » the Nemunas Dawn leader said.

The Government’s proposed real estate tax changes received great resistance from the outset. People were already on the streets, and next week they promise to repeat the protest. So the question arises as to whether the passions are not extinguished.

« It may be a protest on June 10, and June 11 will appear in new versions. We have seen such cynical things, » Gentvilas said.

« Insinuations that something need to be extinguished, somewhere to retreat is broken, » the prime minister said.

« Psychological blackmail for people who have assets where they accumulate a lifetime investment pension, children, the state attacks it – what they have earned for many years, » said a member of the Board of the Lithuanian Real Estate Broker Association.

But there are more suspicions. Some see viewing in their pocket as well.

« It is likely that there are people in the coalition who have previously paid and will not pay such a tax.

Amber Skaistė. Photo by R. Riabov / BNS

According to Wednesday’s proposal, not only the middle class, but also millionaires can avoid real estate tax on the main home.

« I can’t find that logic – who needed to start a reform when we had even millions of assets, » Gentvilas said.

The rulers recognize that the gaps have left the gaps. It is already talking on Thursday – wealthy has to pay even for their first home.

We would raise less funds from the real estate tax than we are collecting now.

« Naturally, R. Žemaitaitis has to pay for his home. If my home value is half a million – I can really pay for it, my income allows it, » said Žemaitaitis.

But the authorities did not look at something else. With its proposal from real estate tax does not increase but reduces budget revenue.

« A little less – it’s really, » said R. Žemaitaitis.

Without taxing the main dwelling, received over 9 million. Last year, the existing tax collected more – 16 million.

« We would raise less funds from the real estate tax than we collect now, » said G. Skaistė.

The feverish solution may not be convinced by the European Commission either. The taxpayers’ circle was supposed to be expanded due to European funds, but so far the number of payers is not increasing.

« I have no idea why the European Commission should pay additional funds, » Skaistė said.

With the conclusions of scientists, members of the Seimas will return to the real estate tax consideration next week.