‘Pinnacle of cynicism’ – Lithuanian firms spend pandemic subsidies on luxury cars
LRT.lt, BNS2021.05.27 17:06
Porsche cars (associative image) / AP
Nearly 150 firms in Lithuania used government subsidies, aimed at keeping businesses afloat during the pandemic, to purchase luxury cars.
Lithuania s Tax Inspectorate (VMI) has data that 148 business firms that claimed coronavirus subsidies in 2020–2021, subsequently purchased luxury cars valued at over 50,000 euros, said MP Mykolas Majauskas, chair of the parliamentary Budget and Finance Committee, on Thursday.
“Thirty-two of them bought Bentley, Maserati, Porsche, Lamborghini, Rolls Royce cars,” he told reporters.
While he did not give away the names of the firms, Majauskas cited a case where a company was included into the list of businesses affected by the pandemic, used the option to defer taxes, claimed subsidies to pay furloughed employees, received additional taxpayer support and purchased a Range Rover SUV wort
Expensive cars spark discussions of luxury tax in Lithuania
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Luxury cars (associative image) / BNS
Conspicuous consumption has not been hit during the pandemic, leading some politicians to suggest that Lithuania may need a tax on luxury.
Luxury cars have been the most conspicuous signs that some were spared economic hardship during the pandemic.
“Last year we sold 50 cars and we re planning to sell as many in 2021,” Bentley Vilnius director Evelina Avina told LRT TV.
In most cases, luxury cars are owned by business firms, only rarely are they registered by individuals, according to Regitra.
Last year, Lithuanian companies registered more than 1,200 cars valued above 50,000 euros, spending over 100 million on luxury vehicles. The figures are not much different from those of 2019, indicating the pandemic had little effect on luxury.