A member of the Lithuanian parliament, Daiva Petkevičienė, has registered amendments to the Personal Income Tax (GPM) Law to increase the tax-free interest limit from 500 euros to 2,000 euros. This initiative is driven by the realization that the current limit, set over a decade ago, no longer serves its purpose in encouraging real investment amidst rising inflation and changing interest rates.

Petkevičienė noted significant changes in the economy during this period, including increased price levels and a decrease in the purchasing power of money, alongside a rise in public involvement in investment activities and the interest earned on bank deposits. By proposing to raise the limit, she aims to restore a tax relief measure that reflects modern economic conditions and provides effective incentives for investment.

Furthermore, she emphasized that increasing the tax-free interest limit would create clear incentives for citizens to hold their funds in bank deposits, invest in bonds, and utilize peer-to-peer lending and crowdfunding opportunities. This proposal is expected to foster greater individual investment and participation in the economy, aligning better with current financial realities.