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Lithuania to introduce tax incentives to fight shadow economy

Source: Xinhua    2018-03-30 23:29:29

VILNIUS, March 30 (Xinhua) -- The Lithuanian government plans to introduce tax incentives to Lithuanian residents amid efforts to curb shadow economy, according to the government's annual report published on Friday.

The planned changes are aimed at incentivizing people to pay officially for goods and services in business sectors with prevailing cash payments.

"More opportunities to lower taxable income will be provided to residents when purchasing services with high risk of shadow," says the report by the Lithuanian government.

The document didn't disclose any concrete measures.

According to local media reports, the government considers introducing income tax refund scheme. More details on tax incentives aimed at tackling shadow economy are expected later in April, according to the government's staff.

The Lithuanian government says in its annual report that shadow economy in Lithuania, though has been shrinking, still exceeds the European Union average by one third, and tax evasion "accounts for a substantial part".

According to Lithuanian free market institute, shadow economy accounts to 26 percent of Lithuania's GDP.

Last year, Lithuania's top tax authority launched a receipt lottery to tackle tax evasion and increase transparency of the country's businesses.

Editor: yan
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Xinhuanet

Lithuania to introduce tax incentives to fight shadow economy

Source: Xinhua 2018-03-30 23:29:29

VILNIUS, March 30 (Xinhua) -- The Lithuanian government plans to introduce tax incentives to Lithuanian residents amid efforts to curb shadow economy, according to the government's annual report published on Friday.

The planned changes are aimed at incentivizing people to pay officially for goods and services in business sectors with prevailing cash payments.

"More opportunities to lower taxable income will be provided to residents when purchasing services with high risk of shadow," says the report by the Lithuanian government.

The document didn't disclose any concrete measures.

According to local media reports, the government considers introducing income tax refund scheme. More details on tax incentives aimed at tackling shadow economy are expected later in April, according to the government's staff.

The Lithuanian government says in its annual report that shadow economy in Lithuania, though has been shrinking, still exceeds the European Union average by one third, and tax evasion "accounts for a substantial part".

According to Lithuanian free market institute, shadow economy accounts to 26 percent of Lithuania's GDP.

Last year, Lithuania's top tax authority launched a receipt lottery to tackle tax evasion and increase transparency of the country's businesses.

[Editor: huaxia]
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