Lithuania raises non-taxable income threshold to EUR 540

The Lithuanian parliament on Tuesday voted to raise the non-taxable income threshold by 80 euros to 540 euros as of July, meaning an increase in income for the lowest earners whose annual income does not exceed the national average.

The amendments to the Law on Personal Income Tax were passed with 93 votes in favor, none against and eight abstentions.

The increase in the income threshold will bring an extra 16 euros a month to people earning the minimum wage and 12 euros to those getting a net monthly salary of 1,000 euros.

The measure will cost the state around 103 million euros in lost budget revenue this year. The average monthly salary in Lithuania currently stands at 1,679 euros before tax.