2024-06-08 06:05:40
“The tax system in Lithuania collects 9 % much less from GDP than the EU common. After all, this doesn’t imply that the system should absolutely adjust to the European common. (…) We see sure elements within the composition. To begin with, loads of the finances is supported by oblique taxes, however this example additionally exists in lots of EU economies. However if you happen to take a look at labor taxation, it’s greater than the OECD (Group for Financial Cooperation and Improvement – ELTA) common,” B. Gracia mentioned on the press convention the place the IMF offered its findings to Lithuania.
“Any tax reform ought to intention for effectivity and redistribution. VAT is an efficient tax, but it surely impacts low-income households probably the most,” he emphasised.
In response to the pinnacle of the IMF mission, property and environmental taxes have the best potential for reforming the tax system in Lithuania.
“We consider that the best potential to gather finances income is in different areas, resembling actual property.” The income collected from such a tax shouldn’t be the very best, however in Lithuania such taxation is far decrease than in neighboring international locations. There are additionally different property taxes,” defined the pinnacle of the IMF mission.
“Environmental taxes would clear up two issues without delay. This might enhance the quantity of funds collected within the finances. As well as, it could additionally clear up environmental issues, as a result of at present taxation on this space, particularly associated to CO2 emissions, shouldn’t be adequate to realize the objectives set out within the Paris Settlement,” he commented.
B. Gracia talked about that 15% is utilized in Lithuania. the company tax may be very aggressive, however there are locations the place it might be elevated, thereby growing protection funding.
“In the mean time, Lithuania’s company tax may be very aggressive, however there’s room to extend it a bit with a purpose to higher finance protection, whereas nonetheless leaving it engaging to traders,” assured B. Gracia.
In the course of the two-week IMF mission, the financial scenario of the nation was assessed, the prospects of public funds have been analyzed, consideration was paid to the competitiveness of the financial system, the scenario within the vitality sector and the reform agenda.
2024-06-08 06:05:40