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Investors' Forum urges Lithuanian government to tackle tax and labor market issues

Dalia Grybauskaitė susitikime su Investuotojų forumo nariais.
Prezidentūros nuotr. / Members of Investors' Forum with President Grybauskaitė.
Šaltinis: BNS

The Investors' Forum, an association of the largest foreign investors in Lithuania, criticize the country's authorities for their "indifference" in regulating labor relations and call on them to be more decisive in carrying out tax reforms and dealing with land and territorial planning issues.

Members of the Investors' Forum met with members of the Cabinet on Wednesday to discuss key business environment issues, the association said in a press release.

The investors reiterated their call for introducing a ceiling on monthly salaries subject to the social security tax at 5,000 litas (EUR 1,450) and restoring contributions to second-pillar pension funds.

The Forum's proposals also include reducing to the threshold at which property owners have to pay the real estate tax to 0.5 million litas and, at the same time, lowering the tax rate to 0.5 percent, as well as cutting the land tax rate on used land to 1 percent, while leaving in place the 4-percent rate on unused land, and "reasonably" taxing people's income from interest and replacing the existing VAT reduction for heating with direct payments to socially disadvantaged families.

The investors also called on the government to continue its policy of combating shadow economy and to make fiscal cash registers obligatory to all retailers, except those selling cottage industry products.

They also proposed to further reduce cash payments by encouraging employees to pay salaries to their employers through banks, restricting legal entities' right to accept or make cash payments, and regulating borrowing in cash by private individuals.

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