The two Baltic countries plan to impose a "defense tax"
2024-08-15
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Liu YupengRussia's Viewpoint reported on the 13th that the Baltic countries of Estonia and Lithuania are preparing to impose various types of "defense taxes" on domestic companies and citizens to maintain military spending "in order to defend against possible military invasions from Russia." The plan has received some support in these two countries, but there are also voices saying that these policies are "crazy" and will only further worsen the country's fiscal situation and the living conditions of the poor.According to a previous report by Estonian Radio and Television, the country's parliament agreed to a plan to levy more "defense taxes" at the beginning of this year, including raising business tax rates, increasing land taxes and corporate profit taxes, and raising consumption taxes on tobacco, alcohol, fuel, natural gas and electricity. The Estonian government also plans to levy a "security tax" that all people, including low-income earners and retirees, must pay.Lithuania has also introduced similar measures. According to the Lithuanian National Radio and Television, the Lithuanian government approved a "National Defense Fund" plan in June this year, aiming to increase defense spending to 3% of the country's GDP in the next few years. The fund's funding mainly comes from: temporary "solidarity contributions" levied by the government on the country's banks, various income taxes and consumption taxes levied on companies and individuals, and voluntary donations from the public. Among them, the Lithuanian government decided to increase corporate income tax from the original 15% to 16%, and cancel tax incentives for the insurance and healthcare industries. Gasoline prices in Lithuania will rise by about 6 to 7 euros (1 euro is about 7.88 yuan) next year, and diesel prices will rise by about 16 euros.Regarding the "national defense tax" plan, some Estonian entrepreneurs believe that this is a "patriotic act." Others say that it is necessary for companies to assume additional responsibilities on national security issues. But there are also voices questioning the rationality of the policy. The View reported that the country's opposition lawmakers said that the current government's fiscal policy is crazy. "The state is plundering the poor, forcing them to save on food, clothing and their children's education. There are now 65,000 low-income families in Estonia, and this number will only increase as the economy continues to decline." The country's opposition lawmakers also said that the government's initiative to levy a war tax will not encounter organized opposition from residents because it will be "accused of being unpatriotic." Lithuanians face the same dilemma. According to reports, about one-third of the country's total population of more than 2.8 million live below the poverty line or are on the verge of poverty. ▲
