According to the Lithuanian Free Market Institute’s (LFMI) annual calculations, Tax Freedom Day in Lithuania has moved earlier in the calendar and will fall on May 20 this year, compared to June 7 last year. LFMI proposes to declare this date the Taxpayer Appreciation Day and include it in the Law on Memorable Days, so honouring the people whose taxes are used to finance civil servants and state-owned areas, such as healthcare and social security, education, defence and the police. In 2012 the average Lithuanian taxpayer has to work 141 days to pay the total tax bill imposed by all levels of government.
LFMI believes that it would be symbolic to remember and honour the labouring individual who pays nearly half of his earned income in taxes, who toils not only to earn living for himself and his family, but also to finance the public sector. At present, Lithuania commemorates 54 different days, for example, the day of harvest, fishermen, sea and the like. LFMI hopes that Lithuania’s politicians will find it worthwhile to thank the taxpayers and will amend the law to include the Taxpayer Appreciation Day.
LFMI started the tradition of commemorating the Tax Freedom Day in Lithuania in 1993. It is a symbolic day in the year when the average income earner stops handing over his income to the public sector and begins to make money for his own and his family’s welfare. It is an indicator of the state expenditure burden in relative terms which shows what portion of the value created by today’s and future taxpayers is taken by the government to be distributed through the national budget and non-budget funds.
According to LFMI, the Lithuanian government is worth to be praised for its commitment to trim budget deficit and cut expenditure – the reason why the Tax Freedom Day accedes this year. Compared to 2011, when this day came on June 7, the public sector will spend nearly 750 million Litas less in 2012. This is good news for the current and future taxpayers who pay the total bill imposed the public sector.