According to the head of the Government, the additional taxes were needed for the compensation of the pensions that were reduced during the crisis. Butkevicius highlighted that there was no other way.
"None would have raised the issue related to the new taxes, if not the additional financial requirements we faced. We know this and there is no need to try to hide it. If we want to implement these requirements as soon as possible, we need to understand – there are no miracles in economy. Of course, some of people recommended borrowing and paying out everything. But I never will agree with this," said Butkevicius on Monday.
According to the Prime Minister, the escalated issue related to the car tax should be solved as soon as possible.
"The Commission which was looking for the ways to compensate the pensions as soon as possible presented the unanimous agreement (). But there were different opinions heard. I think that there will be a great resistance because of the forthcoming election," said Butkevicius in the show Good Afternoon, Lithuania on the national TV on Tuesday.
Butkevicius revealed that Lithuania received the proposal to introduce the car tax shortly after it joint the European Union (EU).
When the Prime Minister was asked about the proposal to introduce the taxes on the unhealthy food, Butkevicius said that this was impossible.
As reported, MP Kestutis Masiulis asked the Board of the Seimas to set a working group, which would draft amendments on taxing unhealthy food such as chips, lemonade, energy drinks. It would allow avoiding the introduction of tax on cars and motorcycles.
"The Seimas should not opt out and should provide an alternative for the plans of the Government to tax cars. Taxing cars is socially unjust, it mostly burdens low-earners and it is regarded negatively by the society. Cars are used by people as a means of transport, work and leisure, it is not a luxury; as a result, taxing cars is a simple extortion. Will be this tax revoked after the compensations are paid? Surely not," says Masiulis.
As an alternative to taxing cars, MP proposes to tax on unhealthy food. According to MP, taxing unhealthy food is usual global practice and it would be possible to collect approximately LTL 71 million (EUR 21 million) of income from this excise tax.
