The Lithuanian Free Market Institute examined the submitted draft law proposing replacement of the single personal income tax rate currently amounting to 15% by a three-tiered tax rate: 15% tax rate applicable to the share of annual income up to LTL 24,000, 20% tax rate applicable to the share of annual income amounting from LTL 24,000 to LTL 120,000 and 40% tax rate applicable to the share of annual income in excess of LTL 120,000. LFMI provided the reasons why it would not be expedient to amend the current provision of the Law on Personal Income Tax.
