Prominent Music Industry Figures Address the Government: “Such Plans Pose a Threat”

As the Lithuanian Government considers increasing the VAT rate for cultural events from 9% to 12%, the community of event organizers is raising concerns about the negative consequences of such a decision. While representatives of the cultural sector fully understand and support the need to strengthen national defense capabilities, they emphasize that defense funding should be universal—not selectively drawn from sensitive areas that foster societal resilience, as stated in a press release.

Reducing Access to Culture Is a Dangerous Path

In times of war or crisis, culture is one of the key sources of societal resilience. It unites, inspires, strengthens identity, and nurtures critical thinking. At a time when democratic values and social stability are under threat, the state should not take steps that suppress community spirit.

Most EU countries are aiming to maintain or even reduce VAT rates for the cultural sector, recognizing its importance to public well-being and resilience.

Defense Funding Must Be Universal

Lithuanian event organizers and cultural sector representatives are ready to be a responsible part of society and take on some of the responsibility for national security. However, they emphasize that this must be done fairly—through universal measures.

For example, a general VAT increase from 21% to 22% would have a comparable (or even greater) impact on the national budget but would be distributed more evenly across all sectors of the economy. In such a case, the cultural sector would effectively agree to a VAT increase three times greater than the general rate (from 9% to 12%). But the current selective approach sends the message that the state is choosing to defend its territory at the cost of sacrificing the spirit of its communities.

“When faced with threats, a country should increase access to culture, not reduce it. The cultural sector understands the threat of war and is ready to contribute—but it must be done together with everyone. Only together can we achieve meaningful results,” says Martynas Tyla, Chairman of the association that organizes the M.A.M.A. music awards.

Cultural sector representatives are calling on the Government to reassess the consequences of the proposed decisions and to adopt sustainable, equitable funding models that impact all sectors equally.

EU-Wide Trends

Across EU countries, there is a prevailing tendency to apply reduced VAT rates to cultural services, recognizing their significance for public well-being and access to culture. In many countries, VAT rates for cultural events range from 5% to 10%.

The Netherlands: Refusing to Increase VAT on Culture

In its 2025 spring budget, the Dutch government rejected a proposal to raise the VAT rate for the sports, culture, and media sectors from 9% to 21%. The government chose to maintain the reduced 9% rate to protect public access to these services.

Lithuania’s Position in Context

Lithuania’s plan to increase VAT on cultural events from 9% to 12% stands out in the European context. Most EU countries are seeking to maintain or lower VAT rates for the cultural sector, recognizing its role in fostering societal resilience and cohesion. As such, Lithuania’s move could be viewed as a step in the opposite direction—one that may negatively impact access to cultural services and the overall vitality of the sector.