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Lithuania may create a special fund to finance defence

Apr 17, 2024

The Lithuanian government will propose to create a special fund to raise funds for defense by raising taxes.

This was stated by Lithuanian Prime Minister Ignjida Šimonite, LRT reports.

"The Ministry of Finance is drafting a law on a special fund that could accumulate these funds," Šimonite said.

According to her, after that, the government will propose to the Seimas to create such a fund and provide sources of funding.


The Lithuanian prime minister said that this is being done to convince politicians that higher taxes, once agreed upon and implemented, will really go to finance national defense.

According to her, several sources of increased defense funding are now being agreed upon, including a surcharge on corporate income tax.

"We have several such proposals, which - I won't say that anyone is happy with them - are more or less acceptable. At least, many people think so. First of all, we are talking about a surcharge to the corporate income tax, which could be used to finance defense," she stressed.

Author - Olena Madiak, 17/04/2024

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