Part of the funds under the Plan "New Generation Lithuania" has been unlocked for Lithuania, and the dialogue with the EC continues
Today, the European Commission made a positive preliminary assessment and unlocked almost EUR 9 million from the frozen EUR 26 million funds under the Plan "New Generation Lithuania". Regarding the remaining part of the subsidy, according to the EC regulation, the dialogue will continue within the next two months, after which a final decision will be made.
After assessing the additional information provided by Lithuania on the actions taken, the EC considers milestone 144 "Delivery of the proposals to expand environmental taxes and taxation of other sources less detrimental to economic growth on the basis of an in-depth analysis to the Seimas" fully achieved.
The EC positively assessed the Government's proposals to the Seimas regarding the changes to the immovable property tax. Changes to environmental taxes have already been presented earlier and the EC has already recognized that this part of the milestone has been achieved. Under milestone144, the entire remaining amount of EUR 8.734 million will be paid out. These funds will reach Lithuania in February-March of the following year, since according to the EC regulation, a positive decision will still be considered in the working groups and committees of the Council of the EU.
After assessment of the additional information provided by Lithuania on the actions taken regarding milestone 142 "Delivery of the proposals made on the basis of an in-depth analysis for the withdrawal of tax exemptions and special tax regimes to the Seimas", the European Commission considers the milestone partially achieved. The EC stated that there is a lack of information to make a final decision, therefore Lithuania is asked to provide additional information within the next two months. After receiving this information, the EC will make a final decision on the disbursement of the funds allocated under the aforementioned milestone.
Lithuania has committed itself in the Plan "New Generation Lithuania" to withdraw "tax exemptions and special tax regimes that are inefficient, no longer reflect state priorities or do not comply with the Green Deal", in order to achieve this goal, "to identify tax exemptions and special tax regimes which are inefficient, no longer reflect state priorities or do not comply with the Green Deal and amend the respective tax laws" and "to prepare and to submit to the Seimas the draft amendments to the respective tax laws".
Lithuania presented to the European Commission an analysis of tax exemptions and special tax regimes with arguments for which individual tax exemptions are not withdrawn. In implementing the aforementioned milestone, the Government submitted to the Seimas draft amendments to the Law on Corporate Income Tax, the Law on Personal Income Tax, the Law on Excise Duty and the Law on Immovable Property Tax, which propose to withdraw various tax exemptions. These amendments, in Lithuania's assessment, undoubtedly significantly contribute to the achievement of milestone 142.
Last updated: 21-12-2023
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