The Lithuanian Free Market Institute (LFMI) has examined draft amendments to the Law on Tax Administration and the Law on Legislative Framework and submitted its comments and proposals to relative legislative authorities. LFMI calls for the adoption of the draft legislation due to the following reasons:
- A six-month adjustment period is essential for the taxpayers to adjust to new tariffs, tax base, etc.;
- One of the biggest flaws of the current tax system – unpredictability, is largely dependent on the possibility to change taxes together with the budget;
- A prohibition on changing taxes with the budget would help to solve the deficit problem by preventing its root cause which is too high budgetary expenditure;
- The draft laws do not deprive the Government from the opportunities of quick reaction to emerging or current situations;
- More effective, just and due application of egulation does not require operational efficiency.
The full position paper (in Lithuanian) can be found at http://www.llri.lt/naujienos/ekonomine-politika/pastabos-del-lr-mokesciu-administravimo-ir-lr-teisekuros-pagrindu-istatymu-pakeitimo-projektu/kaetana-leontjeva