Lithuanian Prime Minister Mindaugas Sinkevičius said the new government has no plans to raise taxes on businesses or households, despite removing a previous commitment from its program not to introduce new taxes during its term.
Speaking after his first meeting with representatives of the Lithuanian Confederation of Industrialists following the approval of the new cabinet, Sinkevičius said the government’s intentions had not changed.
“I cannot carve such a promise in stone, but there are no hidden intentions or plans to increase taxes,” the prime minister said.
Instead, Sinkevičius said the government intends to finance its social policy commitments through economic growth, moving funds and reallocating spending rather than by introducing new taxes.
“We will look for internal reserves to meet our social goals. That means some sectors will have to operate with less funding than before because priorities will be reviewed,” he said, without specifying which areas could face spending cuts.
