Lithuania Planning to Introduce Solidarity Tax for Higher-Income Individuals

Lithuania's Ministry of Finance has proposed the introduction of a solidarity tax for higher-income individuals in order to reduce income inequality and fund economic recovery from COVID-19. Initial plans include imposing the solidarity tax at a rate of 3% on income exceeding 150 average monthly salaries (VDU) per year. Considering the current VDU value for 2021 of EUR 1,352.7, the solidarity tax would be imposed on income exceeding EUR 202,905. The VDU value will be revised for 2022.