"Certain vision and consensus have been reached on the income tax. There could be a so-called average rate of 25% for incomes above 36 average wages, which would lead to a corresponding increase in revenue for the budget," Paluckas told reporters after the Coalition Council’s sitting on Tuesday.
This rate would apply to several dozen thousands of employees in Lithuania, he added.
Paluckas said the coalition sticks to the earlier agreement on three GPM rates, proposing to tax income up to 36 average wages at 20%, income between 36 and 60 average wages at 25%, and income above 60 average wages at 32%.
However, the proposal to impose an additional 8% rate on total annual income of more than 120 average wages has been scrapped, according to the prime minister.
"Today we have a basic rate of 20% and we have a 32% rate for very high incomes, (25% – ELTA) here would be an intermediate one," Paluckas said.
Paluckas also noted that the Government expects to collect around EUR 500 million a year if all the planned tax changes were adopted.