Liberals are skeptical of the proposal to tax a portion of insurance contracts

by times news cr

2024-08-04 09:12:40

“Just like during the spring session, so now – we are very skeptical about the proposal of the Ministry of Finance to tax insurance contracts. In the current period, it is particularly important to expand the circle of insuring people, especially those people who insure their homes and other assets. <...> Taxing policyholders will, of course, increase the price of insurance and make it less attractive,” said V. Čmilytė-Nielsen to the news agency “Elta”.

“It is very counterproductive for the current period. It will be really difficult to support such an idea,” she emphasized.

In general, V. Čmilytė-Nielsen was surprised, it is strange that the Ministry of Finance is submitting a proposal for consideration, which the partners of the coalition basically did not support during the spring session of the Seimas.

According to the chairman of the Liberal Movement, without additional discussions or negotiations, it will be very difficult to find support for the initiative, so it is unlikely that a real result will be achieved.

“There is no doubt and no dispute that the defense of the state is the foundation of everything else today. And it needs to find sustainable, long-term sources. But this resource was removed from the general package in the spring by the efforts of the liberals because of the doubts I mentioned. And nothing happened that would change our opinion,” explained the politician.

“A common, broad consensus must be sought regarding additional sources for the national defense. Individual initiatives, as in this case of the Ministry of Finance, where it is obvious that there is no support in the coalition, simply will not receive support and will not benefit from it”, lamented V. Čmilytė-Nielsen.

“An operating pattern is chosen that does not lead to an outcome,” she concluded.

“Elta” reminds that on Wednesday, July 31, the Ministry of Finance submitted for coordination the draft Law on Security Contribution, which proposes to introduce a 10% premium for part of the insurance contracts. fee. Such a contribution would be paid from 2025. July, and the collected funds would be allocated to the State Defense Fund.

The Security contribution proposed by the Ministry of Finance would be paid by insurance companies operating in Lithuania, insurance companies of other countries of the European Economic Area and branches of insurance companies of third countries.

During the spring session of the Seimas, when considering the sources of additional defense funds, taxation of some insurance contracts was among them. However, this proposal was removed from the final draft of the State Defense Fund and its sources of funds.

According to the calculations of the Ministry of Finance, the Security contribution already in 2025 would generate 50 million euros, and from 2026 – 100 million euros.

2024-08-04 09:12:40

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