Lithuanian Finance Minister says, “If a company makes profit, it has to share it”

Finance Minister Rimantas Šadžius claims that new profit tax law amendments in Lithuania will not impose a greater financial responsibility on the shoulders of business.

Under the new amendments, business people will have to pay profit tax on 50 per cent of their profit, and another 50 per cent they will be able to use to cover past losses.

However, according to the minister, this proposed law was developed considering the fact that the country’s banks, which during the crisis were working at a loss, still did not pay any profit tax even when they became profitable again.

However, Rimantas Šadžius denied that the amendments are directed specifically against the banks, saying, "This proposed law is not directed specifically against the banks or against any other branch of the economy. We treat all companies equally. The principle that entrepreneurs recognize as fair is that if you made a profit last year, pay profit tax this year; only if you had losses earlier will profit tax paid to the budget be lower." He explained further,  "We got the idea after looking at the banks. (... ) When they were operating at a loss, no one could request profit tax from them and never would have. But when profitable years start, they need to share this profit with public funds a little. We offer a fair rule - in half. "

Info by Elta.