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Japanese say Lithuania should have clearer investment attraction strategy

Klaipėdos LEZ
15min.lt nuotr. / Klaipėda Free Economic Zone
Šaltinis: BNS
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Lithuania could promote foreign direct investment based on priority business sectors, rather than on geographically-defined free economic areas, Yoshimitsu Kobayashi, the president and CEO of Sumitomo Life Insurance and a member of the board of the Committee on Europe at Keidanren, one of Japan's biggest and most influential business organizations, has said.

Kobayashi told Verslo Žinios that it was difficult for him to understand why Lithuania was offering a zero profit tax rate for six years based on the geographic location, within a free economic area.

"If you focus on certain fields, such as biotechnologies or other specific technologies and if lower income tax rates were applied to develop these technologies (irrespective of the area), then I would understand, because it would be easier for investors to understand where the country focuses on in providing investment incentives," the business daily quoted the Japanese businessman as saying.

"But in your case, zero profit taxes apply in free economic areas where any businesses can operate. That makes me wonder what your investment attraction strategy is," he said.

Such factors as tax incentives, tax and labor laws, communications and the geographic location are important when choosing a country for investment, but the key criterion is that country's investment attraction strategy, Kobayashi believes.

BNS
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