President to propose to parlt to tax all income equally

Lithuanian President Gitanas Nauseda says he plans to propose to the country's parliament in the fall to introduce a flat residential income rate for all types of income, and to apply different rates based on its size.

"There are many proposals, and they include economic issues, like, for example, taxing residential income not based on its origin but based on size since work-related income and capital income are of similar nature, therefore, they shouldn’t be taxes with special rates for one of the other," Nauseda told the DELFI Demesio Centre program on Tuesday.

"I could hardly say today that capital is more expensive than work as there's a widespread lack of workforce. Therefore, labor taxation should be fair," he said.

The president said he would propose canceling some tax credits and halting the initiative of raising the size of non-taxable income and use the freed-up funds to step up pension increases.

The Seimas of Lithuanian will start its fall session on Sep 10.