V. Žukauskas. Limitations of cash will not curtail shadow economy

LFMI welcomes the Lithuanian Parliament’s decision to decline the proposals to limit cash settlements in excess of 10,000 litas. The Ministry of Finance argued that this restriction would help combat the shadow economy in Lithuania.

LFMI argued that cash settlement restrictions would impose additional costs on individuals and companies and would hardly help curtail the shadow economy as the restriction would not affect citizens who sell smuggled goods or pay “under the table” wages.

LFMI urged policy and decision makers to improve conditions for legitimate activities rather than focusing exclusively on prosecuting and punishing offenders.