The Lithuanian Real Estate Development Association (LNTPA) supports the appeal of the Lithuanian Confederation of Industrialists and 75 other business organizations to the Government regarding planned decisions to raise additional funds for national defense. Lithuanian businesses urge the government to responsibly design additional revenue collection by focusing on accelerating and stimulating economic growth rather than increasing taxes. Government representatives are invited to begin discussions immediately with business organizations on the planned tax changes.
Key Messages of the Appeal:
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Increasing economy-damaging taxes = investment stagnation = slower economic growth = fewer funds for defense.
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Considering the geopolitical and geo-economic situation and the need to strengthen national defense, business organizations propose alternative solutions that do not harm the economy.
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Political decisions that are not based on solid economic assessments must not be allowed to cause long-term damage to Lithuania’s economy. Such tax changes will not solve defense funding issues but will further delay urgently needed decisions and create additional problems in an already strained geo-economic environment.
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Despite previous promises to consult the business community, the government is ignoring key arguments from businesses and is pushing tax changes that could significantly weaken Lithuania’s investment environment and slow economic growth.
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Contrary to bold declarations, this tax reform would also prevent the most critical goal—significantly and rapidly increasing Lithuania’s defense budget. Given the current geopolitical situation, such an approach would not only be short-sighted but outright dangerous.