Mass demonstrations erupt over proposed real estate tax plans in Vilnius
Lithuanians Rally Against Proposed Property Tax in Vilnius
People flocked to Cathedral Square in Vilnius on a sunny Sunday to protest a proposed nationwide property tax. This wasn't the first time the streets echoed with citizen outrage, as the government's plans to overhaul property taxation drew widespread disapproval.
Protestors, hailing from different corners of Lithuania, held their ground, waving national and municipal flags, and signs that read, "What's next - a weather tax?", "Selling out Lithuanian people for European millions", and "My home is my fortress". Gathered around screens displaying reports about the property tax, protest organizer Raimondas Šimaitis voiced his concerns to journalists.
"Instead of collecting taxes from oligarchs, they are targeting ordinary people," Šimaitis said. "Our clear demand is that primary residences must not be taxed, because they were purchased with money on which we have already paid taxes - including taxes on our loans." Taking a definitive stance, Šimaitis added, "Your home should be absolutely untouchable."
Notable attendees included Member of Parliament Valius Ąžuolas and representatives from the Nemunas Dawn party. With an estimated 4,000-4,500 participants, the event passed without significant incidents, according to Vilnius Police Public Order Division head Jevgenijus Liepis. A few minor incidents were reported, including a rubbish bin fire and one person requiring medical attention.
Amid the crowd, working pensioner Janina from Lentvaris voiced her concerns. "Our whole tax system is a mess," she said. "Salaries are among the lowest, pensions are among the lowest, and now they want to raise taxes." Agreeing with her were protesters like Stasys from Klaipėda, who asserted, "We already pay VAT, fuel taxes, road taxes. And our roads are terrible."
If implemented, the government's proposal would direct half of the new property tax revenue to a national defense fund, with the rest going to municipalities. A staunch opponent of the property tax, Stasys questioned, "We are not under attack. It's the government that's attacking us."
Meanwhile, Vilnius resident Vidas supported some changes but insisted that defense funds should be solely allocated for military purposes. Asta Šalvaitienė, a concerned protester, worried that future tax amounts would escalate due to property revaluations.
To voice their dissent, protesters signed a petition to amend the law, which organizer Šimaitis promised to present to parliament once they had secured the necessary 50,000 signatures. Šimaitis had orchestrated a similar protest in autumn 2023, but the government's stance has remained steadfast despite public backlash.
The proposed property tax reform includes exemptions for primary residences valued below €450,000, while additional properties and higher-valued homes would face a progressive tax. Critics argue that this new taxation structure is detrimental to Lithuanian homeowners and the real estate market. However, the reform is set to proceed, with parliament supporting the changes in the second reading. The legislation is expected to pass in June 2025, marking a significant shift in Lithuania's property tax system.
Policy and legislation are at the forefront of the ongoing debate in Lithuania, as citizens rally against a proposed property tax in Vilnius. The proposed reform, set to proceed in June 2025, has drawn widespread criticism from various political circles and general news outlets, with many expressing concerns about its potential impact on homeowners and the real estate market.
