Construction decreased
In accordance with the Municipal Infrastructure Development Law and the methodology for determining the infrastructure development contribution approved by the Government’s relevant resolution, the local government is given the right to receive set contributions for the construction environment, for example, roads, streets or lighting, from those who are building residential houses. This charge is known to many as the infrastructure charge.
The municipal council of the city of Alytus regulated such a contribution and its rates in the development territories determined at the local level by its decision at the end of 2022. And it came into force at the beginning of last year. Until then, this contribution did not exist and those who wanted to build residential houses did not pay the infrastructure tax before obtaining permits for their construction.
Therefore, in the capital of Dzūkija, the so-called infrastructure one-time tax for residential house builders came into effect last year. And its size is from 10 to 70 euros for one square meter of construction area. The fee is lower in those areas where the builders need to install less infrastructure, such as in the center or in areas not far from it, higher – in the outskirts of the city.
According to the data of the city municipality, in 2022, when there was still no so-called infrastructure tax, 67 construction permits were granted to the builders of new residential one- and two-family houses. Last year, when this tax already existed, it was more than twice as low, only 31.
The large contribution became famous in the country
Due to its size, the infrastructure development contribution set by the Alytus City Municipal Council was criticized by those who wanted to build individual residential houses. Many people call it money laundering, – you hear, even in Vilnius, Kaunas and Klaipėda this contribution is set lower.
And this is evidenced by the information collected by some members of the city council. For example, in Vilnius the minimum rate of this contribution is 15 euros per square meter of a newly built house, the maximum is 50. In Kaunas – 0 and 13.8 euros respectively, in Klaipėda – 0 and 10.56 euros, in Šiauliai – 12 euros in both cases, in Panevėžys – none tax, in Druskininkai – 1 and 3 euros.
At this point, it is worth reminding once again that in Alytus the minimum payment is 10 euros, the maximum is 70 euros.
At the meeting of the Alytus City Municipal Council, where the issue of reducing this fee was discussed recently, the opposition representative of the council, the leader of the Patriotic Union-Lithuanian Christian Democrats faction, Andrius Jučas, noted that such a fee can be called an add-on to the purchased plot of land: “If a person buys a plot in the city for 15 – 25 thousand euros, if you want to get permission from the municipality to build a residential house of 150 square meters or more, you need to pay infrastructure tax – 7-11 thousand euros. The infrastructure fee is about half of the price of the plot. Is it normal?”
The Socdem proposal is called bullshit
At the current meeting of the city council, Mindaugas Šima, the leader of the majority faction of the Social Democratic Party, submitted a draft decision regarding the reduction of the infrastructure development contribution in two city areas – the city center and current residential areas, such as First Alytus, Putinai or Vidzgiri.
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Find out more by reading the newspaper “Alytaus novijenos” 13994th number.
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