“I do not think that value added tax will be increased. Tensions felt by the most socially sensitive groups, who may be worried, should also be eased. After all, there are other options too,” the minister told the LRT public television on Tuesday evening.
The municipalities’ share of personal income tax could be redistributed, Armonaitė suggested.
“Another thing is to reallocate the municipal share, for example, in the case of changes to the personal income tax. We believe this could be done. It would generate EUR 150 million for defence, which is not so little,” the minister said.
On Wednesday, leaders of ruling political parties and businesses will meet for a third time to discuss ways to increase Lithuania’s defence budget. the Association of Lithuanian Municipalities was also invited to attend the meeting initiated by Prime Minister Ingrida Šimonytė.
Lithuania’s defence spending is set to account for 2.75% of GDP this year. The aim is to raise it at least to 3% in the coming years.