Lithuania 1% VAT rise to 22% proposal

Government considering VAT and other tax rises to fund military spending

Following the Russian invasion of Ukraine in 2022, Lithuania is looking at a 1% VAT increase to 22% to help meet additional military spend.

Estonia VAT increased at the start of this year to 22% for the same reason.

Tax increase options being evaluated

The options of potential tax rises include:

1. Raise VAT to 22% and increase corporate income tax from 15% to 16%
2. Increase corporate income tax from 15% to 16% with withdrawal of tax reliefs
3. Increase corporate income tax from 15% to 17%

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