VILNIUS, Jun 23, BNS – Lithuania’s Seimas has lifted the tax-free income threshold, which will be applied to all labor income this year, by 50 euros, to 400 euros.

The respective amendments to the Law on Income Tax, which were initiated by President Gitanas Nauseda, were passed in a vote of 111 to zero, with one abstention.

According to Nauseda, a higher tax-free income threshold would leave lowest-paid workers with higher disposable income.

Previously, the authorities planned to lift the tax-free income threshold to 400 euros early in 2021.

However, the Seimas turned down another initiative put forward by the president, who called to reduce the income tax rate by 5 percentage points until the end of December.

By Sniegė Balčiūnaitė

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