European Commission criticizes Lithuania for poor VAT
collection
The level of VAT
revenue collected in Lithuania is well below that
which could be collected, the European Commission
has said.
“It should be noted
that the difference between the VAT revenue actually
collected and the theoretical tax liability in
Lithuania still remains large, which shows a
potentially high level of tax evasion related to
VAT,” the Commission said in a report on tax reforms
in EU Member States.
According to the
Commission, the country places too heavy a tax
burden on low-income earners and will face
challenges with modification of housing taxation,
corporate income tax breaks and the tax authority’s
activities as well as with implementation of tax
liabilities.
As estimated by the
Commission, the level of various other consumption
taxes (besides VAT, taxes on energy, and alcohol and
tobacco duties) in Lithuania is the lowest in the
European Union (EU).
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