LITHUANIA DAILY NEWS BULLETIN
IN THIS ISSUE:
- Upcoming events in Lithuania for Thursday, June 26, 2025
- NATO defense funding pledge may be brought forward – Lithuanian defense minister
- Former SOP commander Mazonas tipped as Lithuania's next military intelligence chief
- Lithuania records no illegal border crossings from Belarus
- Lithuanian parliament to vote on property and income taxes, pension reform
- Delaying NATO's 5 pct defense spending deadline to 2035 sends 'bad signal' – Lithuanian FM
- EU leaders likely to agree on new sanctions against Russia – Lithuanian FM
- Poet awarded by Valdas Adamkus received funding from the Russian foundation (media)
- Lithuanian parlt speaker seeks to prevent further tax changes after current reform
- Lithuanian PM sees no reason to discuss military intelligence subordination
- Lithuanian parlt backs lower income tax rates for farmers amid protest (corrects)
- Lithuanian parlt introduces three income tax rates
- EU's new Russia sanctions package among strongest yet – Lithuanian president
- Lithuania to tax primary residence above EUR 450,000, other properties from EUR 50,000
- Lithuanian Seimas OKs 2nd pillar pension system reform
- European security requires swift, coordinated, decisive action – Lithuanian president
- Lithuanian MPs initiate changes to allow 16-year-olds to elect mayors, councilors
- Tax reform in Lithuania estimated to slow GDP growth by 0.3 pp – government
Upcoming events in Lithuania for Thursday, June 26, 2025
VILNIUS, Jun 26, BNS – The following events are scheduled in Lithuania for Thursday, June 26, 2025:
PRESIDENT Gitanas Nauseda to attend a European Council meeting in Brussels.
This email address is being protected from spambots. You need JavaScript enabled to view it., Vilnius newsroom
NATO defense funding pledge may be brought forward – Lithuanian defense minister
VILNIUS, Jun 26, BNS – NATO's pledge to allocate 5 percent of GDP to defense spending could be brought forward in response to changing circumstances, Lithuanian Defense Minister Dovile Sakaliene said on Wednesday.
"The agreement to carry out a review in 2029, taking into account geopolitical circumstances, shows that these figures could still change as the environment evolves," Sakaliene told BNS.
"Realistically, we all understand that the geopolitical situation will likely become even more complicated, and unfortunately, tensions will remain high. This means that if the review starts in 2027, even more ambitious targets could be set by 2029," the minister said.
"For example, the deadline could be moved forward," she added.
Sakaliene's comments came after NATO leaders agreed to raise defense spending to 5 percent of GDP by 2035, including 1.5 percent for indirect defense-related investments.
Progress toward the target will be reviewed in 2029.
"This is a historic achievement. Twelve months ago, we were discussing when all Alliance members would reach the two percent mark, and now, just a year later, we have essentially agreed to more than double that commitment," the minister said.
NATO allies are increasing defense spending not only in response to growing threats from Russia but also to help keep Donald Trump engaged, as the US leader has long complained that Europe is spending too little on defense.
"At the summit, President Trump was very clear and unequivocal about the need to strengthen the Alliance and boost defense funding, about America's commitment, about the US increasing its defense budget and strengthening its defense industry. There's a clear understanding that we all need to become significantly stronger," Sakaliene said.
The NATO summit declaration also reaffirmed allies' "enduring sovereign commitments to provide support to Ukraine, whose security contributes to ours," but made no mention of NATO membership for the country. Previous summit statements had said Ukraine would eventually join the Alliance.
"No new decisions on Ukraine were made. Of course, what was agreed at earlier summits still stands, but there has to be consensus. Any alliance needs consensus to admit a new member. Right now, that consensus isn't there, so there's been no further progress,” Sakaliene said.
"Still, Ukraine and support for it were mentioned in the very brief summit declaration. Leaders made clear in their statements that helping Ukraine remains a top priority. They stressed the need to ensure Russia doesn't get the illusion it can keep expanding its empire, and that Ukraine is critically important to NATO's overall security," she added.
This email address is being protected from spambots. You need JavaScript enabled to view it., Vilnius newsroom
Former SOP commander Mazonas tipped as Lithuania's next military intelligence chief
VILNIUS, Jun 26, BNS – Colonel Mindaugas Mazonas, former commander of Lithuania's Special Operations Forces, is expected to be appointed head of the Second Investigation Department, the country's military intelligence agency, the public broadcaster LRT and the news website Lrytas reported on Wednesday, citing sources.
Mazonas would replace Colonel Elegijus Paulavicius, who was dismissed by Defense Minister Dovile Sakaliene earlier on Wednesday.
Mazonas headed the Special Operations Forces from 2018 to 2023 and is currently serving as Lithuania's defense attaché to the United States and Canada.
Sakaliene told BNS on Wednesday that she had already selected a candidate for the post and had agreed on the choice with President Gitanas Nauseda. The new military intelligence chief will be appointed in August.
Paulavicius was transferred to the professional military service reserve on Wednesday, despite having submitted a request in mid-June to be dismissed from professional military service in August when his term of office was due to expire.
The director of the department is appointed by order of the defense minister.
Earlier on Wednesday, Sakaliene told reporters that she made the decision to dismiss Paulavicius due to an ongoing internal review of the department, which focuses on the work environment.
She said the review had been launched earlier on Wednesday.
The defense minister said that she had informed the president, as commander-in-chief of the Armed Forces, Prime Minister Gintautas Paluckas, as her immediate superior, and Chief of Defense General Raimundas Vaiksnoras about her decision to transfer Paulavicius to the reserve.
The Second Investigation Department is one of Lithuania's two intelligence services and is responsible for ensuring and strengthening national security in the defense sector.
This email address is being protected from spambots. You need JavaScript enabled to view it., Vilnius newsroom
Lithuania records no illegal border crossings from Belarus
VILNIUS, Jun 26, BNS – Lithuanian border guards recorded no attempts to cross into the country from Belarus illegally for the fourth day in a row on Wednesday, the State Border Guard Service (SBGS) said on Thursday morning.
Latvia reported 91 illegal border crossing attempts on Wednesday. Poland denied entry to 71 irregular migrants on Tuesday, according to the latest available information.
Lithuania has barred 872 irregular migrants from entering from Belarus at non-designated places so far this year, after turning away 1,002 in 2024.
The influx of irregular migrants into the EU's eastern member states from Belarus began in 2021 and is blamed by the West on the Minsk regime.
This email address is being protected from spambots. You need JavaScript enabled to view it., Vilnius newsroom
Lithuanian parliament to vote on property and income taxes, pension reform
VILNIUS, Jun 26, BNS – The Lithuanian parliament is expected to hold a final vote on Thursday on changes to property and personal income tax rates, set to take effect in 2026, as well as on new rules for second-pillar pension accumulation.
The proposed tax and pension reforms are aimed at helping Lithuania meet targets agreed with the European Commission and unlock funding under the Recovery and Resilience Facility (RRF).
In response to the planned tax overhaul, the Lithuanian Grain Growers Association, the Agricultural Council and the Farmers' Union are staging a warning protest – the second in a week – in Vilnius on Thursday.
Audrius Vanagas, chairman of the Grain Growers Association, told BNS on Wednesday that this protest would be smaller than last week's. It is timed to coincide with the planned vote on amendments to the personal income tax law.
Vanagas said around 200 people are expected to take part, with about 100 of them observing the plenary sitting. In addition, 32 old tractors will be driven into the city center.
Alongside the tax changes, lawmakers are also expected to approve a two-year window for opting out of the second-pillar pension system, which would run until the end of 2027. Any funds withdrawn during that period would not be taxed.
Businesses warn that the government's proposed reform could prompt people to leave the system and reduce investment by pension funds. Social Security and Labor Minister Inga Ruginiene forecasts that around 20 percent of participants will opt out.
The International Monetary Fund warned in early June that the reform could lead to lower pensions in the future and increase pressure on public finances as the population ages.
The European Commission has also cautioned that it could hinder the development of Lithuania's capital market and limit access to financing for market participants.
This email address is being protected from spambots. You need JavaScript enabled to view it., +370 5 239 64 14, Vilnius newsroom
Delaying NATO's 5 pct defense spending deadline to 2035 sends 'bad signal' – Lithuanian FM
VILNIUS, Jun 26, BNS – Lithuanian Foreign Minister Kestutis Budrys says NATO's decision to extend the deadline for reaching the 5 percent of GDP defense spending target until 2035 sends the wrong political signal.
"Politically, stretching the timeline sends a bad signal. We're not just setting a timeline for ourselves, but also showing our adversary, Russia, that it will take us a decade to reach our ambitions, (...) and that's not good. We should push really hard to move that deadline up as much as possible," Budrys told Ziniu Radijas on Thursday.
His comments came after NATO leaders agreed in The Hague on Wednesday to reach the 5 percent target by 2035, with 1.5 percent of GDP to go toward indirect defense-related spending.
Progress toward the target will be reviewed in 2029.
"I'm skeptical about the ten-year timeline and I criticized that part of the deal. I can admit that the text was watered down during the negotiations, because the focus was on the 5 percent figure, rather than on when we'll actually get there. The assumption is that everyone will stick to the plan, that we might revise it along the way, maybe even raise our ambitions, and so on," Budrys said.
Lithuania plans to allocate an additional 12 billion to 13 billion euros for national defense by 2030 as it develops the national division, acquires new equipment and prepares to host a German brigade. This would raise defense spending to between 5 and 6 percent of GDP.
The country aims to spend just over 4 percent of GDP on defense this year, and 5.25 percent next year.
According to Budrys, while spending is unlikely to jump to "7 percent or so," Lithuania is still likely to have the highest defense spending relative to GDP among NATO member states next year.
This email address is being protected from spambots. You need JavaScript enabled to view it., Vilnius newsroom
EU leaders likely to agree on new sanctions against Russia – Lithuanian FM
VILNIUS, Jun 26, BNS – European Union leaders are likely to agree on the 18th package of sanctions against Russia, Lithuanian Foreign Minister Kestutis Budrys said on Thursday.
Budrys added that during the European Council meeting on Thursday and Friday, compromises will likely be sought with countries opposing restrictions on Russian energy supplies.
"It's very likely the sanctions package will be approved, probably in the form in which it's currently drafted. However, the European Council may still seek some compromises," he told the Ziniu Radijas radio station.
The EU is considering new sanctions against Moscow to pressure it to come to the negotiating table for peace in Ukraine.
The package aims to curb Russia's energy exports by lowering the price cap on oil sold by the country and further restrict the activities of its banks.
According to Lithuania's top diplomat, several EU countries are holding the sanctions package "hostage" because they oppose a separate European Commission proposal to ban Russian gas imports completely by 2027.
Because of this, Slovakia and Hungary, which are diplomatically closer to the Kremlin and still import Russian gas via pipeline, said earlier this week that they will block the new sanctions.
Some countries also oppose the proposed price cap on Russian oil, Budrys added.
"The G7 failed to reach an agreement on lowering the price cap, which is now 60 dollars per barrel. We are pushing for 45 euros. Lithuania has consistently taken this stance. We'll see how leaders manage to agree, as this was discussed in the Foreign Affairs Council," he said.
Budrys also said that it is still possible to coordinate sanctions with the United States.
According to the minister, the sanctions package emerging in the US Senate is expected to have a much stronger impact than the one under consideration in the EU.
President Gitanas Nausėda represents Lithuania in this week's European Council meeting.
This email address is being protected from spambots. You need JavaScript enabled to view it., Vilnius newsroom
Poet awarded by Valdas Adamkus received funding from the Russian foundation (media)
VILNIUS, Jun 26, BNS – Jurij Kobrin, a member of the Lithuanian Writers' Union, who was awarded a state award by President Valdas Adamkus in 2003, has received funding from a Kremlin-controlled foundation, the Lithuanian National Radio and Television (LRT) reports on Thursday.
Kobrin apllied to the Russian-controlled Foundation for Supporting and Protecting the Rights of Compatriots Living Abroad (Pravfond) in 2023 for 3,000 euros, promising to promote Russian literature in the Baltic states by the end of 2024.
The money was transferred to the account of the writer's son, Gleb Kobrin, who lives in Moscow, at Sberbank, and in April last year, his son sent a report on Kobrin's work to the foundation, which stated that the writer's collected works were being distributed free of charge, including to schools in Lithuania.
Kobrin is a member of the Lithuanian Writers' Union, was awarded by Adamkus in 2003, and has also received awards in Russia.
The poet told the LRT that he could not remember any correspondence with Pravfond. The Lithuanian Writers' Union told the public broadcaster that a decision on Kobrin's membership will be made at its next meeting.
According to the LRT, funding from the Russian-controlled foundation has also been provided to various organizations claiming to fight the spread of Nazism in Lithuania, as well as to the pro-Russian Telegram network of channels targeting the Baltic states.
This email address is being protected from spambots. You need JavaScript enabled to view it., Vilnius newsroom
Lithuanian parlt speaker seeks to prevent further tax changes after current reform
VILNIUS, Jun 26, BNS – Saulius Skvernelis, speaker of the parliament and leader of the Democrats "For Lithuania," will seek assurances from his ruling coalition partners that once the current tax reform is approved, no additional tax changes will be made until the end of the parliamentary term.
"We have made our position clear: we won't support any other tax changes unless they involve implementing European directives or other key matters," he told reporters on Thursday.
The Democrats said earlier that they would ask their coalition partners – the Social Democrats and Nemunas Dawn – to formally commit to this. However, Skvernelis now said such an agreement does not necessarily have to be written down.
"We talked about it being an agreement, not necessarily a written one, but the key thing is that it is respected, because we see that even written agreements aren't always followed,” the speaker said.
"We have to make an effort to do so, maybe without formal signatures, but there should be some communication or understanding on how to achieve it. I believe it's possible to agree not to return to those issues during the remaining three years of the term," he added.
The Seimas is expected to hold a final vote on Thursday on changes to property and personal income tax rates, set to take effect in 2026, as well as on new rules for second-pillar pension accumulation.
The parliament has already raised the reduced VAT rate from 9 percent to 12 percent, scrapped heating subsidies, increased the corporate income tax rate by 1 percentage point to 17 percent, introduced the so-called sugar tax, and taxed insurance contracts at 10 percent.
By Jūratė Skėrytė
This email address is being protected from spambots. You need JavaScript enabled to view it., Vilnius newsroom
Lithuanian PM sees no reason to discuss military intelligence subordination
VILNIUS, Jun 26, BNS – Lithuanian Prime Minister Gintautas Paluckas says that the defense minister's recent decision to dismiss the chief of the Second Investigation Department under the Defense Ministry, the country's military intelligence service, does not create any preconditions to discuss the subordination of this department.
"It is not the appointment procedure that should be discussed as then we should be discussing the subordination or the structure of the institution itself. In that case, it (the SID - BNS) should probably be removed from the Defense Ministry's structure and subordination," Paluckas told reporters on Thursday.
"And then we should consider who submits and who decides, similarly to the State Security Department. The president proposes, the Seimas decides. But this would already be a kind of reform, and there is no discussion on this yet," he said.
The prime minister does not see the need for institutional transformation because of one case, which "is more of an emotional-psychological nature".
Meanwhile, Speaker of the Seimas Saulius Skvernelis said on Wednesday that the appointment of Lithuania's new military intelligence chief should be decided at a higher level than it is done right now, and this issue should be tackled during this parliament.
Skvernelis compared the military intelligence service with the State Security Department whose appointment involve the president and the parliament.
Under the existing procedure, the chief of the the Second Investigation Department, Lithuania's military intelligence, is appointed by the defense minister.
Skvernelis raised this issue after Defense Minister Dovile Sakaliene's decision to dismiss Colonel Elegijus Paulavicius as head of the country's military intelligence.
Paulavicius was transferred to the Defense Ministry's temporary professional military service reserve on Wednesday under Sakaliene's order.
This email address is being protected from spambots. You need JavaScript enabled to view it., Vilnius newsroom
Lithuanian parlt backs lower income tax rates for farmers amid protest (corrects)
(corrects para 3)
VILNIUS, Jun 26, BNS – The Lithuanian parliament on Thursday backed lower personal income tax rates for farmers amid mounting discontent in the sector over planned tax changes.
While debating the final amendments to the Law on Personal Income Tax, MPs approved the Committee on Rural Affairs' proposed changes in a vote of 60 to 16 with 35 abstentions. The legislation will be put to a final vote later.
Under the proposal, farmers would be subject to two income tax rates – 15 percent and 20 percent – in line with their demands. Income up to 60 times the average wage (around 140,000 euros) would be taxed at 15 percent, and anything above that at 20 percent.
Around 100 farmers protesting outside the parliament against the tax reform applauded after Saulius Skvernelis, speaker of the parliament, announced the results of the vote.
Social Democrats were the least supportive of the reduced tax rates, with four voting in favor, 15 against and 30 abstaining. Among the conservatives, 11 voted in favor and 17 abstained. MPs from other ruling and opposition political groups supported the lower rates.
As part of the protest, about 30 old tractors were lined up outside the parliament building, some displaying signs reading "Back to a bright tomorrow" and "Sysas' five-year plan for farming – a return to the past." Farmers in yellow vests stood gathered around them.
Editor: Roma Pakėnienė
This email address is being protected from spambots. You need JavaScript enabled to view it., Vilnius newsroom
Lithuanian parlt introduces three income tax rates
VILNIUS, Jun 26, BNS – Lithuanian lawmakers on Thursday introduced three personal income tax rates that will come into force from 2026 and also set an additional tax-free income rate for families from 2027.
On Thursday, 78 members of the Seimas voted in favor of the amendments to the Law on Personal Income Tax, while 46 voted against and no one abstained.
Under the new rules, all annual income will be aggregated and, depending on the size of the income, rates of 20 percent, 25 percent and 32 percent. The 20 percent rate will apply to income up to 36 average salaries (around 84,000 euros a year), the 25 percent rate will apply to income ranging from 36 to 60 average salaries, and income above 60 average salaries (around 140,200 euros) will be taxed at 32 percent.
A separate personal income tax model will apply to farmers as their income of up to 36 average salaries will be taxed at 15 percent and anything above 36 average salaries will be taxed at 20 percent.
Editor: Roma Pakėnienė
This email address is being protected from spambots. You need JavaScript enabled to view it., Vilnius newsroom
EU's new Russia sanctions package among strongest yet – Lithuanian president
VILNIUS, Jun 26, BNS – The European Union's proposed 18th package of sanctions against Russia would be one of the strongest the bloc has imposed on the Kremlin, which continues to wage war in Ukraine, in more than a year and a half, Lithuanian President Gitanas Nauseda said on Thursday.
"It covers energy, banks and the so-called shadow fleet. It could really deal another blow to Russia's economy," Nauseda told reporters in Brussels ahead of the European Council meeting.
"I truly hope it will be serious and tough, because, if I may put it this way, it's one of the strongest packages I can remember from the past year and a half," he added.
The new package aims to curb Russia's energy exports by lowering the price cap on oil sold by the country and to further tighten restrictions on its banks.
In early June, the European Commission proposed lowering the price cap on Russian oil exports to 45 dollars (39 euros) per barrel, from the current 60 US dollars (52.5 euros).
Nauseda noted that rising oil prices, driven by the conflict between Iran and Israel, could make it harder for EU leaders to reach a deal on the cap.
"Prices are going up and, unfortunately, with tensions running high, they're bound to keep rising. That makes our task more difficult, but we'll will still pursue it," he said.
The president added that higher oil prices benefit Russia.
"The biggest problem is that, despite Iran being an ally of Russia and Russia formally expressing regret over what's happening, on the other hand, it's quietly rubbing its hands, because the key factor is oil prices, which are fueling the war in Ukraine and feeding Russia's economy," he said.
The strongest opposition to the EU's push to further restrict Russian energy exports comes from Slovakia and Hungary, which are diplomatically closer to the Kremlin and still import Russian gas via pipeline. Both countries said earlier this week they would block the new sanctions.
This email address is being protected from spambots. You need JavaScript enabled to view it., +370 5 239 64 16, Vilnius newsroom
Lithuania to tax primary residence above EUR 450,000, other properties from EUR 50,000
VILNIUS, Jun 26, BNS – The Lithuanian parliament on Thursday adopted amendments to the Law on Real Estate Tax, the most hotly debated part of the current tax reform, after the ruling coalition modified both the original government proposal and its later revision in response to criticism from the public and some politicians.
The bill passed with 77 votes in favor, 46 against and four abstentions.
MP Valius Azuolas of the Lithuanian Farmers and Greens Union (LFGU) said the real estate tax will generate less revenue after the reform than it does now.
"We're currently collecting about 16 million euros from the tax and we'll only collect around 3 million," he told the parliament.
Gintare Skaiste of the conservative Homeland Union–Lithuanian Christian Democrats said the adopted version means less money for defense and lower revenue for municipalities.
The former finance minister noted that Lithuania had pledged to broaden the real estate tax base as part of its commitments to the European Commission and failure to do so could cost the country significant funding.
"This government hasn't changed that commitment. It's linked to 87 million euros from the Commission's Next Generation Lithuania plan. Since the obligation to increase revenue and widen the taxpayer base remains unmet, we're very likely to lose that funding," she said.
The amendments set the threshold for taxing a primary residence at 450,000 euros per person or 900,000 euros for co-owners. Secondary and subsequent residential properties will be taxed starting at a value of 50,000 euros.
Currently, residential property is taxed at a progressive rate of 0.5 to 2 percent, but only on values above 150,000 euros.
Editor: Roma Pakėnienė
This email address is being protected from spambots. You need JavaScript enabled to view it., +370 5 239 64 14, Vilnius newsroom
Lithuanian Seimas OKs 2nd pillar pension system reform
VILNIUS, Jun 26, BNS – Lithuania's Seimas on Thursday approved the government's proposed reform of the second-pillar pension accumulation system, which significantly liberalizes the system.
Under the new rules, people will no longer be automatically included into the pension accumulation system, will be allowed to withdraw from the system completely, withdraw 25 percent of the accumulated funds once, or the entire amount in case of a serious illness, and those who will continue accumulating their pension will keep the 1.5 percent state contribution.
88 lawmakers voted in favor of the amendments to the Law on the Accumulation of Pensions, 19 voted against and 5 abstained.
The Seimas set a 24-month period for withdrawing from the pension accumulation system from January 2026 to the end of 2027.
If a person wants to withdraw 25 percent of their accumulated pension before retirement, they will be taxed 3 percent, while the amount withdrawn after retirement will be tax-free.
Residents who have accumulated between 5,400 and 10,800 euros will be able to withdraw all their money at once, but only during the set period. These funds will also be tax-free.
For those who stop saving, their contributions will be refunded after a 3 percent withdrawal fee. However, the investment return on the funds will not be taxed, while the state contribution will go back to the social insurance fund SoDra in the form of points and will not be refunded to the individual.
Businesses say such a reform will encourage people to withdraw from saving and reduce fund investments. Social Security and Labor Minister Inga Ruginiene has estimated that around 20 percent of people may withdraw from the pension accumulation system.
In early June, the International Monetary Fund said that the reform could reduce pensions in the future and put pressure on public finances as the population ages. The European Commission has warned that the reform would hamper the development of the capital market in Lithuania and make it more difficult for participants to finance their investments.
Editor: Roma Pakėnienė
This email address is being protected from spambots. You need JavaScript enabled to view it., +370 5 239 64 14, Vilnius newsroom
European security requires swift, coordinated, decisive action – Lithuanian president
VILNIUS, Jun 26, BNS – Europe's security today depends on swift, coordinated and decisive action by EU member states, Lithuanian President Gitanas Nauseda said at the European Council meeting in Brussels on Thursday.
"Today's geopolitical situation leaves no room for delay. European security is not just a matter of words – it requires rapid, coordinated and decisive action," Nauseda's office quoted him as saying in a press release.
The president welcomed the new Preparedness Union Strategy and urged leaders to focus on its implementation. He also called for the immediate launch of a comprehensive EU risk and threat assessment.
"We cannot afford to wait – we need a concrete plan and secured funding, particularly within the 2028–2034 multiannual financial framework," he said.
Nauseda also welcomed the European Council's agreement on the SAFE regulation, one of the key instruments under the ReArm plan aimed at boosting the EU's defense capabilities quickly and in a coordinated way.
The president "underlined the importance of this regulation for building a competitive and sustainable European defense industry and called for the effective implementation of SAFE and other complementary instruments at the national level," his office said.
He said that Lithuania intends to make active use of the SAFE mechanism to bolster its national defense capabilities.
Nauseda highlighted the need to reinforce the EU's eastern border and ensure adequate EU-level funding for this purpose – a request he and the leaders of Estonia, Latvia and Poland had already made in a joint letter to the heads of EU institutions.
This email address is being protected from spambots. You need JavaScript enabled to view it., Vilnius newsroom
Lithuanian MPs initiate changes to allow 16-year-olds to elect mayors, councilors
VILNIUS, Jun 26, BNS - The Seimas of Lithuania on Thursday began the process of amending the country's Constitution to give 16-year-olds the right to elect mayors and local councilors.
78 MPs voted in favor of the motion after it was tabled, three voted against and eight abstained. The bill will be further debated by the Seimas committees.
"This is first of all aimed at strengthening of democracy, and second, promoting citizenship,” Social Democrat Tomas Martinaitis said when explaining the need for the constitutional amendment.
"Why from the age of 16? Because it is the 16-year-olds who are still living in their local municipalities. When they turn 18, many young people leave their hometowns and go to live in big cities, thus slowly losing touch with their communities. They no longer understand what their communities are about, who they represent, and they no longer take part in elections," the MP said.
In his words, the experience of Estonia and other countries where 16-year-olds are allowed to vote in local elections shows that the earlier a person starts to vote, the more politically active they become at an older age.
Meanwhile Audronius Azubalis of the opposition conservative Homeland Union – Lithuanian Christian Democrats criticized the proposal, saying that 16-year-olds are not yet mature people.
"Sociologists have been recording trends for the last three decades which point to a slowing down of the pace of maturity both in the US and Europe, (...) young people need to learn, to gain knowledge, to get to know the world, the society and the very local governance, to mature, and not to deal with local governance issues," he said.
More than 100 lawmaker initiated the amendment.
The Constitution now stipulates that only citizens who are 18 years of age on election day have the right to vote.
A constitutional amendment is deemed to have been adopted when at least 94 out of 141 lawmakers vote in favor of it twice three months apart.
By Jūratė Skėrytė
This email address is being protected from spambots. You need JavaScript enabled to view it., Vilnius newsroom
Tax reform in Lithuania estimated to slow GDP growth by 0.3 pp – government
VILNIUS, Jun 26, BNS – GDP growth Lithuania is estimated to slow by about 0.3 percentage points next year once the changes to the key taxes and also some new taxes adopted by the Seimas come into force, the government says.
Prime Minister Gintautas Paluckas says this is a small impact that will not harm Lithuania's ability to compete with other countries in the region.
"We estimate that Lithuania's real GDP growth will slow by up to 0.3 percentage points after the tax changes. Such a change would hardly affect the competitiveness of our economy," Paluckas told BNS. "The changes are well balanced and will have almost no impact on the Lithuanian economy."
The Office of the Government's Economic Policy Group estimates that the new personal income tax and corporate tax rates alone would slow Lithuania's GDP growth by 0.15-1.25 percentage points in the medium term.
According to the Organization for Economic Co-operation and Development (OECD), the tax burden in Lithuania will be below the OECD average, and the effective rate for monthly earners of between three and five average salaries will increase by about 2 percentage points.
"Corporate income tax in Lithuania will remain one of the lowest, (...) The labor tax burden (personal income tax and social security contributions) remains at the OECD average. Although taxes for higher-earners are increasing slightly, the change is very small," the prime minister said.
OECD data shows that the corporate tax rate is 19 percent in Poland, 20 percent in Latvia and 22 percent in Estonia.
This week and last week, the Seimas adopted long-debated and controversial changes to key taxes. On Thursday, changes to the personal income and property taxes were adopted, while last Tuesday, lawmakers introduced a "sugar" tax, taxed insurance contracts, and made changes to the existing lower corporate tax and value added tax rates.
All of the changes will enter into force in January.
Editor: Roma Pakėnienė
This email address is being protected from spambots. You need JavaScript enabled to view it., Vilnius newsroom