Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.
Factsheet for measure LT-2022-41/2188 – measures in Lithuania
|Country||Lithuania , applies nationwide|
|Time period||Temporary, 07 October 2022 – 30 April 2023|
|Type||Legislations or other statutory regulations|
Supporting businesses to stay afloat
– Deferral of payments or liabilities
|Author||Inga Blaziene (Lithuanian Centre for Social Sciences) and Eurofound|
|Measure added||15 April 2022 (updated 21 April 2023)|
On 1 November 2022, the Procedure for establishing and administering the criteria for taxpayers in financial difficulties and affected by the energy crisis, who are subject to the tax aid measures (Order No VA-83 of the Chief of the State Tax Inspectorate) came into effect that provided for the possibility of tax deferral for energy-intensive undertakings (including owners of individual enterprises). The measure aims at easing the burden on businesses due to high energy prices.
According to the Procedure, as of 7 October 2022, undertakings where energy costs accounted for 10% or more of the costs incurred last year and this year may apply to the State Tax Inspectorate (STI) for a tax deferral. In order to receive the State aid, undertakings should apply to the STI no later than 28 February 2023. On receipt of the application:
Undertakings in bankruptcy and liquidation, and undertakings which have paid dividends after 7 October 2022 are not eligible for the aid.
According to estimates by the Ministry of Social Security and Labour (MSSL), more than 200,000 undertakings could be entitled to the suspension of tax recovery, and deferred social insurance contributions could reach €475 million.
|Does not apply to workers||
||Does not apply to citizens|
Public support service providers
No special funding required
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Form||Not applicable||Any other form of consultation, institutionalised (as stable working groups or committees) or informal|
Social partners' role in the implementation, monitoring and assessment phase:
Employers organisations were partially involved in the design of the measure. E.g., on 8 September 2022, representatives of the country’s largest industrial companies attended a meeting of the Committee on Budget and Finance of the Seimas (Parliament) of the Republic of Lithuania, where they presented the current business situation and stressed the need for state aid.
In general, the measure was welcomed by representatives of major employers’ organisations in Lithuania. However, according to the president of the Lithuanian Poultry Association (LPA), undertakings would like to see more direct support rather than tax deferrals. Although being a good measure, tax deferrals do not solve the problem, but only postpone it. By paying such prices for gas, some undertakings may end up on the verge of bankruptcy, and then tax deferral will be of no help.
Eurofound (2022), Tax deferral for energy-intensive undertakings, measure LT-2022-41/2188 (measures in Lithuania), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/LT-2022-41_2188.html
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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.