"The tax is for the rich but not for most people because currently only 4,654 people from around 3 million own real estate worth more than LTL 760,000 (EUR 220,000)," Prime Minister Butkevicius told the national radio LRT.
According to the head of Government, the new tax for natural persons would supplement the budget with LTL 15 million (EUR 4.3 million).
The immovable property tax would be calculated for the previous year. If Parliament supports the initiative, the tax will enter force starting 2015. The tax calculated for 2015, based on the new system, would reach municipalities in early 2016.
Current tax rate for immovable property is at 1 percent for property worth more than LTL 1 million (EUR 290,000).
