Pašiurpo
It is announced that Lithuania collects one of the lowest tax revenue parts in the EU – 22.3 percent. GDP, when the average in the community is 26.1 percent. The IMF estimates that Lithuania has up to 9 percent of the unused. GDP tax potential that could be implemented through tax system reforms.
The latest proposals of the Government adopted by the Seimas since 2026 in the spring. January, according to the IMF, could bring about 0.6 percent. GDP additional income.
However, there is hope that politicians will ignore the call for tax increases this time, as at least most of the members of the “evening news” talk to the Seimas members of the IMF do not show much enthusiasm.
Moreover, “Evening News” reminds that in the summer the Seimas also decided to change some taxes – personal income, real estate tax, income tax, income, new sugar and insurance taxes, whose income will be for defense.
The results are required
Chairman of the Seimas Budget and Finance Committee, one of the leaders of the Social Democratic Algirdas Sysas He admitted that he first heard about the IMF’s recommendations from “Evening News”.
“Obviously, there will be a discussion, but first and foremost we need to correct what we have made with taxes in the spring. For example, we have made mistakes for the taxation of farmers. First of all, we have to see how much the decisions made in the spring will give you the extra income before seeing something new.
When it comes to farmers, I think the illogical wording is that a farmer with some land can grow (obviously as much as I exaggerate) a kilogram of tomatoes, sell them and call them a farmer and not pay personal income tax. The wording is very failed, and the correctional providers now understand it. I objected to it, but most supported it. In the autumn, the submission of next year’s state budget will be adjusted: to make the relief for real farmers, not “sofa farmers,” Sys emphasized.
To save or increase
Vice Chairman of the Seimas Budget and Finance Committee, “Vardanlator”, Ex -Prime Minister Algirdas Butkevičius “Evening News” told that Lithuania’s financial obligations, which were taken a few years ago, and are still increasing this year, will require increasing income.
“That additional costs were previously partially covered due to inflation and related additional income. Inflation growth is no longer so high, the IMF estimated the balance of our income and expenditure, the amount of fiscal deficit (3 % of GDP), the amount of free money that was huge and A dozen percent. per year, and next year, it is projected to decrease to about 5 percent.
The conclusion is one: either our government must start applying certain savings programs or increasing taxes.
What kind of? I can’t imagine. Of course, the chaos of real estate tax could be repaired and more taxed by the rich, as even some of them will pay a lower fee. I do not see other options, ”said A. Butkevičius.
Caution
Algimantas Radvila, a member of the same Seimas committee, was even more cautious.
“In the Government and the Seimas, decisions are made collegially, discussing it. Therefore, without discussion, I would not like to teach my opinion. It really requires great debate, because we have already increased taxes, even though they have been promised.
It is not necessary to respect
One of the Conservative leaders, vice chairman of the Seimas Audit Committee George Razma He emphasized that the recommendations, even the IMF itself, are an optional thing.
“You can listen to those recommendations as an important opinion, but then evaluate your situation and opportunities. By the way, the new rulers have already announced that some taxes will increase: excise duty on smokers, alcohol. That fact will indicate that there will be some increases.
Yes, alcohol, tobacco are negative things, excise excise increases are not the most painful thing because it is not the first necessity. So if you need more revenue, this option would be one of the softest. However, there is some problem with smuggling: the higher the price, the more incentive to sell smugglers to smugglers. Therefore, it is necessary to strengthen the fight against smuggling in parallel, ”said Razma.
Daiva Čibirienė, President of the Lithuanian Accountants and Auditors Association, comments:
The IMF offers taxes as Lithuania collects one of the smallest tax revenue parts in the EU. But I wonder what the IMF compares with us.
If they compare to those countries whose inhabitants live better, this is wrong. For example, there are countries whose populations spend a much lower amount of their income for utilities and other expenses. It is much easier to take higher taxes from the population of such countries than from those who spend most of their income to maintain housing.
Lithuania is a cold country with four seasons. Therefore, maintenance of housing is much more expensive than in countries that are not “normal” winter. Similarly, construction of the latter is cheaper, etc. Therefore, the IMF is unnecessarily wants to measure everyone with the same ruler – the same taxes will be paid to all, regardless of how much the residents are paid after the main taxes.
If we say that a person has to pay even more and will not have the money for the holidays or for something else, it will be exceeded by the Maslov Pyramid. If we start cutting his necessary needs during taxes, we will certainly not get additional charges, no matter how much we do. Residents will not have the money, and if someone has somehow, they will look for how to avoid those additional charges. There are certain boundaries.
I will give a clearer example, (though maybe some hyperbolizes) to enhance my arguments. Let’s compare the village where everyone is poor, not working and pays taxes, and a city with many millionaires, where they buy and sell many services, goods, business revolves and pays a lot of taxes …
Recently we left the post -Soviet camp, our economy is not so intensified that we can afford even higher taxes because most people have no resources. And we make money much harder than countries with a lot of fossils. The country with oil, heavy metals earns a lot from this, and the population wins. And we have to earn everything with our physical work and mind.
I’ll give you another example. There are two villages. One is only poorly living, and two millionaires move to the other. In which village will there be a job that will pay salaries and taxes? Of course, the one that contains millionaires. And what do we do now? We drive out a millionaire from Lithuania and wait for that “village effect”.
We will already have that effect, because the more a person earns, the more you have to pay, and there are countries where those taxes are lower. And those other countries are more attractive for other reasons – security, climate, higher access to health services, and so on. Residents, especially richer, are already leaving elsewhere. As taxes are increased, ordinary workers are turned on, as we are less and less with us.
Facts
The IMF has also made another recommendation to Lithuania – to allow more migrants to ensure stable labor. Employers’ representatives, of course, are happy to support this. According to Aurelija Maldutytė, President of the Lithuanian Employers’ Confederation, it has been talking about the risk of labor decline for years, so now the most important thing is to discuss and ensure a more efficient long -term migration policy.
“I think this is a truly reflecting insight. We have been talking about the lack of employees for years and have previously been announced by research on the Organization for Economic Cooperation and Development (OECD) that we will lose about 30 % of working age by 2050, which have been very clearly calculated.
Vidmantas Janulevičius, President of the Lithuanian Confederation of Industrialists, says he also supports the proposals. According to him, the IMF is recommended for 20 thousand. The admission of migrants every year in the country should not be a problem.
“We have 160,000 structural unemployed, half of whom are not moving, which are not disabled or anything else. On the other hand, we have a constant need and have nearly 200,000 foreign citizens who are with us. It is the fact that twenty thousand will certainly not adversely affect and we look positively at this proposal and recommendation.”
