Marius Dundulis, the head of the Vilnius office of the London-based strategic market analysis firm Euromonitor International, backs reduction of labor taxation.
"In choosing where to invest, people assess the tax system. We did that as well. It seemed strange back then that with all taxes added together, including contributions to (the state social insurance fund) Sodra, the employer in Lithuania paid much more than the employee received," he said.
Other eastern European countries, or the United Kingdom, have a more favorable taxation regime. Social security contributions in those countries amount to around 10 percent of an employee's gross salary, compared with 31 percent in Lithuania.
