The draft law passed the submission stage with 63 votes in favour, 42 abstentions and 4 votes against. The Committee on Budget and Finance will be the primary one when further deliberating on the draft law. It should return to parliament on 25 June for the consideration stage. Some of the accompanying legislation will be considered on 18 June.
Minister of Finance Gintarė Skaistė said the fund is needed to ensure at least 3% of GDP defence spending. It would help with funding for the creation of a division-sized unit, enhancing air defence, hosting the German brigade, developing military infrastructure, preparing counter mobility measures and supplying the active reserve to boost security.
The fund would aim to accumulate financial resources to ensure fulfilling urgent priority needs in the area of defence and civil protection.
The State Defence Fund would consist of the temporary solidarity contribution paid by banks for the 2025 tax period, voluntary contributions by individuals, entities and other organisations, 1.9% of state budget revenue received from the collected corporate income tax for 2025 and 6% for 2026 and subsequent periods.
It is also foreseen to earmark for the fund 6.5% of the state budget revenue received from excise duties in 2025, 6.6% in 2026 and 6.9% in 2027 and subsequent periods. 0.2% of the fund’s revenue would come from personal income tax in 2026 and beyond.
If adopted, the law would enter into force on 1 October 2024.
However, the opposition intends to request for an expertise evaluation for planned amendments to corporate income tax, personal income tax and excise duty laws.
