Lithuania has introduced new taxes

22.12.2011

21 December 2011 Lithuanian Sejm introduced a new tax on luxury. The object of taxation is real estate valued at more than 1 mln. lit. The owners of such real estate must now pay an annual fee of 1% of the amount exceeding 1 mln. lit. Earlier, deputies made the proposal to extend the tax effect on expensive cars also, but these terms are not reflected in the adopted law. Another innovation is the appearance of a new tax on electronic data means, namely, the flash cards, CDs, computers, phones, home theaters, etc. - all the technical means to record information. In a short time in connection with this it’s expected the rise of prices for computer technics and electronics.

Expert’s opinion

“Lithuania now also is in the list of European countries that have already imposed a tax on luxury. After a preliminary analysis, the Lithuanian experts say that it is an effective source of replenishment of the country budget. Let’s recall that Russia also thinks over the possibility of introducing such a tax. One of the consequences of imposing a tax on electronic data means can be price increase and consequently potential reduction of demand for these goods, however, to estimate such an effect is possible only after some time passing”.

On the basis: www.taxpravo.ru

Vorontsova Maria ( the lawyer of international consulting department of Honest&Bright)