Lithuania reaches 66% of state budget collection goal

Lithuania has fulfilled nearly 66 percent of its state budget collection plan. According to the Ministry of Finance, total revenue for state and municipal budgets reached 14.38 billion euros, an 8.7 percent increase compared to the same period last year.

Key drivers of this growth include a 10.7 percent rise in Value Added Tax (VAT) revenue, totaling 5.27 billion euros, and a 12.9 percent increase in personal income tax (PIT), totaling 2.45 billion euros. The rise in PIT was attributed to an increased wage fund and annual declarations. Additionally, excise tax revenue rose by 9 percent to 1.51 billion euros, bolstered by alcohol, energy products, and a new excise on non-alcoholic sweetened beverages. Corporate income tax saw a 5.8 percent increase, partly due to higher advance payment rates.

In a separate discussion regarding fiscal policy, the Lithuanian Confederation of Industrialists has argued against reinstating VAT relief for heating. The organization contends that such relief is inefficient as it benefits all citizens regardless of income or energy efficiency. Instead, they advocate for the continued use of targeted heating compensations, which provide support based on household income and assets to combat energy poverty more effectively.