G. Nausėda’s appeal to politicians regarding defense funding: “I think we can come to an agreement”

by times news cr

2024-04-18 17:05:36

“I want to point out that when we talk about defense funding and some tax issues, we have to point out that it must be announced at least 6 months in advance. until implementation. And that’s why that window of time, like the tax reform, is closing. True, the scope of the project itself is not as huge as the tax reform. Therefore, I think we can come to an agreement,” G. Nausėda told reporters in Brussels.

The President reiterated that he does not support any increase in value added tax (VAT) for defense purposes. He noted that the issue of VAT is largely no longer discussed in the defense funding debate.

“If we are talking about the sustainable and long-term modernization of the Lithuanian army, then certain political resources can come from taxes, but I am categorically against increasing VAT, because it would be anti-social. And basically, that proposal seems to be taken off the table,” explained the head of the country.

G. Nausėda said that he supports increasing the corporate tax, reducing benefits and ensuring progressivity as ways to create sustainable funding for defense. According to him, Lithuania could borrow for short-term needs.

“And I think that we could really find a consensus here,” said G. Nausėda.

On Wednesday, Prime Minister Ingrida Šimonytė organized a meeting of political parties and business representatives regarding the increase of Lithuanian defense funding. After that, the Prime Minister announced that it is proposed to establish a special fund that will accumulate funds for the needs related to additional defense financing.

Also, according to I. Šimonytė, politicians, business representatives and non-governmental organizations tend to agree on additional defense financing after raising the profit tax by 1 percent.

National defense funding in Lithuania will amount to 2.75 percent this year. from GDP, but it is aimed that this amount will reach at least 3% in the coming years.

2024-04-18 17:05:36

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