Representatives of Citadele, Luminor, OP Corporate Bank, SEB and Swedbank, five major banks in Lithuania, met with Prime Minister Ingrida Šimonytė on Wednesday to voice their concern about the recently extended solidarity tax.
“Shareholders noted that the governments imposed at least two additional taxes on banks operating in Lithuania over the last five years: an additional 5% corporate tax rate in 2019 and a solidarity tax under the Temporary Solidarity Contribution Law in 2023. Both of these taxes were described as temporary when they were introduced, but have been extended,” the Lithuanian Banking Association said in a press release on Wednesday.
Asked by reporters whether the meeting could prompt the Government to reconsider its decision, Finance Minister Skaistė said: “We do not plan to change our position.”
The minister also responded to the shareholders’ statements about a lack of communication from authorities. According to Skaistė, her ministry is in constant contact with representatives of banks or their associations, but it would be naive to expect a consensus in every case.
The Seimas extended the temporary solidarity contribution on banks on 18 June. The tax on windfall profits is expected to bring EUR 60 million revenue to the State Defence Fund in 2025.
