"The new criteria for large projects would ensure that projects which require a large amount of investment but, due to their exceptional nature, create fewer new jobs would also be recognised as large. Such projects will also have to ensure that the new jobs created pay higher wages. This change will help attract more investors," said Aušrinė Armonaitė, Minister of the Economy and Innovation.
The draft also proposes to introduce the possibility to encourage large projects that create fewer jobs but are reserved only for highly skilled professionals. The proposal therefore sets the criteria for a large company to create between 20 and 149 new jobs, and between 20 and 199 new jobs when investing in Vilnius.
"The changes will not only improve investment and business conditions for existing major projects, but will also ensure that Lithuania is well placed to compete with other EU countries in attracting investment. We estimate that, once fully implemented, one project meeting these criteria per year will raise more budget revenue and personal income tax," said Karolis Žemaitis, Deputy Minister of the Economy and Innovation.
In total, the Ministry of the Economy and Innovation has already contracted 11 major projects. The total amount of investment planned for them amounts to €688.9 million. These projects will generate as many as 3,530 new jobs. The Ministry is also in the process of negotiating a contract with another new investor with a planned investment of €412 million. This project would create at least 220 new jobs.
These amendments, which are to be incorporated into the Investment and Corporate Income Tax Laws, will be submitted to the Seimas for consideration.
