State Defence Fund to be supplemented by revenue from new sources

Press release, 26 June 2025 (News ● Photos ● Broadcasts and videos)

The Seimas passed amendments to the Law on the State Defence Fund stipulating new sources of revenue for the State Defence Fund and thus ensuring that the particularly urgent needs for strengthening the defence capabilities of the State and civil protection are met.

Under the amendments passed, the resources of the State Defence Fund, in addition to existing sources, will consist of 2% of state budget and municipal budget revenues from personal income tax (excluding income received from activities conducted under a business certificate) as well as state budget revenue from security contributions and immovable property tax.

The Fund’s resources will amount, in 2026, to 8% of state budget revenue received from corporate income tax and, starting from 2027, to 11.2% of such revenue. Additional revenue is expected to be collected after the Seimas having increased the standard and reduced corporate income tax rates by 1 percentage point.

The resources of the State Defence Fund will be supplemented by 8% of state budget revenue from excise duties in 2026 and 8.4% of such revenue in 2027 and subsequent years, with additional revenue to be collected from excise duties levied on non-alcoholic sugar-sweetened beverages.

The amendments to the Law on State Defence Fund (draft No XVP-432(2)) were passed by 111 votes in favour, with one abstention.

Rimas Rudaitis, Adviser, Press Office, Information and Communication Department, tel. +370 5 209 6132, e-mail: [email protected]