Democratic Party member Thomas Tomilinas advocates for an increase in gambling taxes as an alternative to imposing new property taxes.
Lithuanian Politician Proposes Shifting Property Tax to Gambling Sector
Thomas Tomilinas, a member of the "For Lithuania" faction within the Democrats, has presented a new initiative to replace the government's proposed property tax with alternative funding sources, primarily through stricter taxation of the gambling sector. Tomilinas made these remarks during a press conference at the Seimas on Tuesday.
The Seimas member stressed that the government should abandon its plans for a centralized property tax and instead grant local governments the authority to set their own tax rates and payment schedules based on local circumstances and needs.
To compensate for the estimated €15 million the government expects to raise from the property tax, Tomilinas suggests implementing a more rigorous tax system for the gambling industry. According to the parliamentarian, a legislative proposal to this effect will be registered in the coming days.
In addition, Tomilinas has proposed an alternative or additional source of revenue compensation, which involves a slight increase in the income tax share allocated to the Defense Fund.
Tomilinas' proposal has been supported by his party colleague, deputy Lukas Savickas, who has previously expressed favor for progressive taxation of gambling as a fairer alternative to imposing a tax on insignificant property, which could burden people with modest incomes.
In Lithuania, the gambling sector already faces increased tax burdens from this year, with the tax rate for activities such as slot machines, bingo, and online games set to rise from 20% to 22%. A lower tax rate of 18% applies to the lottery business, with taxable bases differing between gambling and lotteries.
While there is currently no public record of a specific proposal by Thomas Tomilinas to replace Lithuania's property tax with stricter gambling sector taxation, such a change could have significant economic, social, and fiscal implications if implemented. International examples show that gambling taxation is sometimes increased to fund social initiatives, but property taxes generally remain in place as a stable source of revenue.
What is the exact legislative proposal that Thomas Tomilinas plans to register regarding the gambling sector's taxation?
How will casino-and-gambling activities, casino-games, lotteries, and their respective tax rates be affected by the proposed policy-and-legislation changes?
If Lithuania moves to shift property tax to the gambling sector, how could this decision impact general-news related to the economy, social welfare, politics, and overall public finance?
