Last week, Lithuania asked EC for two-year tax target delay; court accepted celebrity skater’s appeal
Lithuanian president hesitant on EU budget review deal this year
President Gitanas Nausėda said Thursday, the 26th of October, that it is “very bold” to expect EU member states to agree on a revision of the bloc’s long-term budget by the end of this year, but added that it remains possible. The proposed budget revision includes an additional 50 billion euros to support the economy of Ukraine which is fighting back against Russia’s invasion. Reaching a deal this year is important because Ukraine will start to need the extra funds early next year, the Lithuanian president said after EU leaders discussed the budget revision at their summit in Brussels, among other issues. The extra billion euros for Ukraine is the most contentious issue in discussions among EU member states on the mid-term revision of the 2021-2027 budget, as the bloc’s “frugal” nations call for the funds to be reallocated from other areas rather than providing additional resources. Meanwhile, Hungary and Slovakia oppose additional support for Ukraine in principle.
VAT gap in Lithuania narrows to 14.5 % in 2021
The VAT gap in Lithuania stood at 14.5 % in 2021, down 4.2 percentage points from 2020, as the country lost 795 million euros in VAT that year, the European Commission announced on Thursday, the 26th of October. Only Romania (36.7 %), Malta (25.7 %) and Greece (17.8 %) had a higher gap than Lithuania, compared to the European median of 4.9 % and the average is 5.3 %. Estonia had the lowest VAT gap in the EU in 2021 as it fell by 3.6 percentage points to 1.4 % and the country lost 40 million euros in VAT that year. Latvia’s VAT gap fell by 1.6 percentage points to 7.3 %. And the country lost 225 million euros. Citing unofficial EC data, Finance Vice Minister Ruta Bilkštytė said earlier Lithuania’s VAT gap continued to narrow in 2022.
Seimas sets up panel on lifting MP Grazulis’ immunity
The Seimas of Lithuania on Thursday, the 26th of October, set up an inquiry commission on lifting MP Petras Gražulis’ legal immunity. However, the opposition Lithuanian Farmers and Greens Union, the Democrats “For Lithuania”, the Labor Party and the non-attached group refused to delegate their representatives. Only the Lithuanian Social Democratic Party group agreed to send its representative to the commission. In all, 75 MPs voted in favour of the establishment of such commission, there were no votes against and abstentions. The commission is expected to issue its conclusion by of November. The prosecutor general told the Seimas that interviews of witnesses and victims, video recordings, and a linguistic examination show that Gražulis may have publicly ridiculed and expressed contempt for LGBTIQ people because of their sexual orientation.
Several thousand people protest against new property tax model
Around 2 500 people gathered in front of the Lithuanian parliament on Thursday, the 26th of October, to protest against the new proposed real estate tax model under consideration by lawmakers. Protesters held placards reading “In the future, tax = homelessness”, “Racketeering returns in the form of property taxes,” or “The conservatives’ gang brings ruin to the nation”. The organisers of the rally say the government’s intention to tax all residential real estate, including a person’s sole residence, amounts to a “de facto expropriation of property”. The parliament was scheduled to hold a final vote on the legislative amendments on Thursday, the 26th of October, but decided last week to postpone the matter until November. The government suggests that the new property tax rates should come into effect in 2025, with the first payment due in 2026.
Foreign Minister urges EU to speed up ammo deliveries to Ukraine
Foreign Minister Gabrielius Landsbergis on Wednesday, the 25th of October, called on EU member states to “stop being frozen in the headlights” and speed up the delivery of the promised ammunition to Ukraine. His comment came after Bloomberg reported that the bloc is falling behind on plans to provide Ukraine, which is fighting back against Russia’s invasion, with a million artillery shells. “The EU promised Ukraine 1 000 000 artillery rounds. So far, we have delivered only 300 000. Meanwhile, North Korea delivered 350 000 to Russia,” Landsbergis posted on the X social media platform.
PM congratulates new Slovak government
Lithuanian Prime Minister Ingrida Šimonytė on Wednesday, the 25th of October, congratulated Slovakia’s new government and hopes for continued cooperation within the EU and NATO in helping Ukraine and putting further pressure on the aggressor Russia. Sworn in on Wednesday, new Slovak Prime Minister Robert Fico earlier voiced his readiness to suspend his country’s support for Ukraine as it’s fighting against Russian invasion. Yet Šimonytė hopes that Lithuania and Slovakia “will work together in further strengthening the EU and NATO, as well as the democratic values that are key to the rules-based international order”. The Slovak politician has also suggested that instead of sending arms to Kyiv, the EU and the US should use their influence to force Russia and Ukraine into a compromise peace agreement.
Lithuania climbs from 20th to 17th place in EU’s Gender Equality Index
Lithuania has made progress towards gender equality, but still lags behind the EU average, according to a report by the European Institute for Gender Equality (EIGE). Lithuania ranks 17th in the EU on EIGE’s Gender Equality Index 2023 with 64.1 points out of 100, a score that is still 6.1 points below the EU average, the agency said in its report. Lithuania’s score has increased by 9.2 points since 2010, mainly due to improvements in the domain of power, it noted. Since 2020, the country’s score has risen by 3.5 points, the fifth-largest increase among the bloc’s member states during the period.
Government proposes to scrap ban on telling minors about LGBTQI
The Lithuanian government proposed on Wednesday, the 25th of October, discard a law provision that information about LGBTQI marriages has a negative impact on minors. The Justice Ministry has drafted the amendments in response to a ruling by the European Court of Human Rights (ECHR), which found that Lithuania violated the provisions of the Convention for the Protection of Human Rights and Fundamental Freedoms on freedom of expression. The Strasbourg court delivered the judgement in a case in which Neringa Macatė, now deceased, challenged the suspension in Lithuania of the publication of her LGBTQI-friendly book “Amber Heart”. Now, the draft amendments will go to the parliament, whose members have diverse opinions on the ministry’s initiative, meaning that the debate on this issue may create another divide, like the ratification of the Istanbul Convention or the legalization of civil partnerships.
Lithuania asked for two-year tax target delay
Lithuania had asked for a delay of more than two years in the deadline for tax reform targets when submitting an updated Recovery and Resilience Facility (RRF) plan to the European Commission, Marius Vaščega, who leads the European Commission Representation in Lithuania, said on Tuesday, the 24th of October. Earlier in the day, the EC said it had rejected this request. Lithuania sought to postpone the adoption of the amendments to the laws on personal income taxation and social insurance contributions, aimed to reduce poverty and income inequality and initially scheduled to come into force no earlier than 2024, from the fourth quarter of 2022 to the first quarter of 2025. The EC stated that the reasons for Lithuania’s request to change the deadlines for these targets are not justified, but did not specify the reasons. The tax reform stipulated in Lithuania’s RRF plan aims to eliminate certain tax exemptions and special tax regimes, as well as to make the tax system more growth-friendly and reduce income inequality and poverty.
Court accepts celebrity skater’s appeal
The Vilnius Regional Administrative Court announced on Monday, the 23rd of October, that it has accepted Margarita Drobiazko’s appeal, but rejected the Russian ice dancer’s request to temporarily suspend President Gitanas Nausėda’s decree stripping her of her Lithuanian citizenship. According to the court’s press release, Drobiazko says in her appeal that the president’s decision to revoke her Lithuanian citizenship, granted by way of exception 30 years ago, “is unreasoned” and fails to meet the requirements of “adequacy, clarity and sufficiency”. The ice dancer maintains that she does not meet any of the conditions for deprivation of citizenship laid down in the Citizenship Law. She claims that she poses no threat to Lithuania’s national security and that she does not express and has not expressed public support for a state that poses a threat to Lithuania’s security.
Week in Lithuania | Seimas sets up panel on lifting anti-LGBTIQ MP Grazulis’ immunity, Foreign Minister urges EU to speed up ammo deliveries to Ukraine
