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2013.11.13 10:40

Tax increase resulted in millions of uncollected income for Lithuanian budget

DELFI|The Lithuania Tribune2013.11.13 10:40

Having analysed the cases of the tax increase in 2008-2012, the Lithuanian Free Market Institute (LLRI) wondered why the representatives of the Government did into evaluate that the tax increase could lead to the decrease in the tax collection and could be responsible for the lower income in the budget, writes The Baltic Course with reference to the news agency ELTA.

 Having analysed the cases of the tax increase in 2008-2012, the Lithuanian Free Market Institute (LLRI) wondered why the representatives of the Government did into evaluate that the tax increase could lead to the decrease in the tax collection and could be responsible for the lower income in the budget, writes The Baltic Course with reference to the news agency ELTA.

The LLRI has analysed the taxation on the royalty payments, the tax increase for the dividends from 15 to 26 per cent and the tax on immovable property for the citizens.

According to Senior Policy Analyst Commentary of the LLRI Kaetana Leontjeva, the representatives of the Government had not evaluated the outcomes of the tax increase.

“Taking into consideration the results of our analysis, all three cases of the tax increase that were analysed were failures. The tax increase led to the decrease in the tax collection or to the lower income in the budget,” said Leontjeva.

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