Lithuania streamlines mechanism of donations on defense

In Lithuania, a new law on the Defense Fund enters into force on October 1, allowing individuals and entities to support the national defense by making online transfers or acquiring defense bonds.

This was stated by Lithuanian Defense Minister Laurinas Kasciunas, Ukrinform reports with reference to LRT.

"Starting tomorrow, a web page will be activated where you can choose a certain action: make a bank transfer, create a recurring payment and go to the bonds section. It will be possible to select an amount, and the usual banking mechanism will be activated. Individuals, companies, various organizations will be able to contribute to Lithuania’s defense," the minister said Monday.

According to Kasciunas, these could be one-time or regular donations. The funds will be credited to a separate account of the Ministry of National Defense which will regularly inform the public about the progress of the initiative.

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In turn, Minister of Finance Gintare Skaiste added that the bonds would be available from October 10.

"People and businesses will be able to borrow for national defense at a lower rate than the Lithuanian state borrows on the markets. They will be available through the same Defense Fund website that will direct you to the site where deals are made. The decisions taken will ensure that we will be able to allocate 3% of the gross domestic product to national defense in the long term. These are stable sources of income that guarantee that, even if political priorities change, there will be enough money to guarantee this 3% financing," said the head of the Ministry of Finance.

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It is noted that at the end of June, the parliament adopted a package of measures to finance defense - in addition to creating the Defense Fund, it also lays down an increase in the corporate income tax by 1%, to 16%, from next year, as well as a rise of excise taxes on tobacco, alcohol, and fuel.

According to Kasciunas, the funds will be used to create an army division and a tank battalion, as well as purchase infantry fighting vehicles and strengthen air defense.

It will also finance the purchase of landmines, setting up anti-tank barriers, and the implementation of the rest of the counter-mobility plan.

As Ukrinform reported earlier, on September 28, Lithuania announced a new package of military aid to Ukraine.

Photo in text: LRT nuotr.