Ukrainian MP won't support universal property tax

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Ukrainian MP won't support universal property tax

There was talk about the introduction of a universal real estate tax, but I do not think that is the time for it or for discussions on that matter, Majauskas told Delfi TV on Tuesday.

The Conservative MP said that other members of the Committee wouldn't support this tax or a raise in other taxes.

The Committee on Budget and Finance would not approve of new universal taxes, as far as I speak to colleagues. MP Majauskas said today that we must focus on support for the most vulnerable, for families, for small and medium-sized businesses.

The Ministry of Finance had suggested that the universal real estate tax would be progressive, taking into account the value of a property and linked to a person's primary place of residence. The average tax size is estimated to be EUR 13.5 per year.

The Finance Ministry estimates that revenue from real estate tax paid for the second and every subsequent property would amount to between EUR 25 million and EUR 100 million per year depending on the tax rate set by municipalities.

The Bank of Lithuania proposed that the real estate tax could consist of eight different rates depending on the value of a property and, in that case, tax revenue would reach EUR 97 million per year.