“If it were my personal will, I would say yes, it is possible, it is necessary. If it depended on my one vote, then tomorrow we would have those 4%. But society can agree, as business invites, the whole nation can sign a resolution on 4 percent. It is good that the business, on whose shoulders the burden may fall due to 3 or 4 percent. BVP is inclined to contribute and initiates a change in this direction”, P. Saudargas told “Žinių Radio” on Wednesday.
“But the Seimas will still need to agree and vote, this is the most important thing. So far there is quite a heated debate about 3 percent, so I don’t know if we will be able to open the debate for even more funding up to 4 percent this spring session.” he explained.
Mr. Saudargas assured that the most likely source of defense financing, which politicians could agree on and business would agree to, is raising the corporate tax. However, according to him, a single tax increase may not be enough to achieve the set goals.
“I would return to what the Government has proposed, to 4 sources. The options between those 4 models, their various combinations, can be n+1, we just need to agree on sustainable financing up to 3%, touching certain taxes, and in perspective we would exceed 3% in some years, because the financing will be needed in some stages and more “, said the conservative.
“About 3 percent we will need to come to an agreement, so far I see the most gathering consensus on the profit tax, because the business itself agrees that it can be raised, (…) and the support of the opposition is possible, but this tax alone may not be enough. (…) I believe and I really wish that we come to an agreement”, he expressed his hope.
ELTA reminds that in March, at the second meeting initiated by Prime Minister Ingrida Šimonytė, four options were presented on how to raise around 400 million next year. euros, which are needed for the additional financing of the national defense of Lithuania.
According to the first, the amount could be raised by revising progressive tax rates, taxation of individual activities, abolition of some benefits and up to 16 percent. by increasing the corporate tax. According to the second, 420 million 1 percent of euros could be collected. by increasing both the value added tax and the profit tax.
The third proposal, which would generate about 400 million euros – to increase the corporate tax rate by 2 percent. points, to cancel the preferential rate for small companies, as well as the heating and business license exemptions. At that time, the fourth offer for 400 mln. euros would consist of 2 percent. points for the defense of the increase in the profit tax and the allocation of a part of the personal income tax falling on the municipalities.
In turn, the opposition factions that did not participate in I. Šimonytė’s meeting propose to find funds for defense by introducing a bank property tax, issuing defense bonds, and reducing the shadow in the economy.
The opposition factions of the Seimas presented their proposals for additional funding for defense. Among them are proposals to introduce a bank property tax, defense bonds, an increase in the corporate tax, and a reduction in the shadow.
National defense funding in Lithuania will amount to 2.75 percent this year. from GDP, but it is aimed that this amount will reach at least 3% in the coming years.
In order to unite society and encourage politicians to agree on 4% as soon as possible. To defend the GDP allocation, civic-minded Lithuanian businesses and organizations are joining the “4 percent” initiative.
Tags: Saudargas allocate percent defense BVP agreement reached Seimas
