The Lithuanian Parliament amended the law on real estate, according to which an annual real estate tax will be levied on objects worth more than €217,000, according to ee24.com referring to the Lithuanian media.
To date, a tax of 1% is levied on all properties which tax value exceeds €290,000. It is believed that lowering the price on the threshold of taxable property can attract additional €2.9 million to the Lithuanian budget.
The MPs argue that the new law will increase the social responsibility of the more affluent strata of Lithuanian society and attract new funds to finance public spending.
Experts believe that laws regarding the taxation of real estate in Lithuania are too soft. In late May, the Lithuanian parliament raised the tax rate on the land.