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Report: Lithuanian lawmakers approve corporate tax hike for banks

The Lithuanian parliament passed legislative amendments increasing corporate tax on banks' profits exceeding €2 million to 20% starting from 2020, the Baltic Course reported Dec. 17, citing news agencies LETA and BNS.

All legal entities operating in Lithuania, including banks, currently pay a 15% corporate tax on their profits. The approved tax hike, which is expected to generate approximately €20 million in additional budget revenue, replaced an earlier proposal to introduce a separate tax on bank assets, the report noted.

Gintare Skaiste, a member of the parliament's committee on budget and finance, said the tax hike could reduce competition in the banking sector, while Liberal MP Simonas Gentvilas noted that he plans to refer the tax hike to Lithuania's Constitutional Court.