“Know Your Taxes”, a personal tax calculator developed by the Lithuanian Free Market Institute has been implemented in Bosnia and Herzegovina, allowing taxpayers to calculate how much tax they pay and how the government spends it. The launch of the calculator sparked a lot of interest: 2,500 Bosnians used the application on the first day, while the first five days attracted over 5,000 taxpayers.
Previously the tax calculator has been implemented in Poland, Ukraine and Slovakia.
“We’re glad that our project was well received not only in Lithuania, but in the rest of the world as well. Our partners that introduced the calculator stress that in addition of educating the public, it helps in achieving strategic reform in the areas of taxation and public finance,” – says Aneta Vainė, Development and Programs Director at the Lithuanian Free Market Institute.
The calculator was presented to the Lithuanian public in 2014 and its relevance has not dwindled to this day. Over 85,000 people have already calculated their taxes. The calculator is also available in English and Russian.
Upon inputting their wage and expenses on daily consumables, excise products and services, taxpayers may see how much tax they pay monthly or annually. Each user receives an individual bill for all the taxes paid per year and a tailored state expenditure breakdown, showing how the government spends his or her taxes.
“A portion of politicians still think that taxation in Lithuania is too low; however, one should look into the actual situation before claiming so. In most cases, the personal tax bill comes as a shock, meaning that the system lacks transparency. The amount of tax deducted from wages is not visible to the public, because the employer pays it. Likewise, when going shopping we rarely reflect on how much we pay for the actual product as opposed to tax,” – says Žilvinas Šilėnas, President of LFMI.
For example, if you work under a contract and earn €500 after tax, afterwards spending that money in shops, you pay over €5,000 in taxes per year; however, if you buy any fuel, tobacco or alcohol, you pay even more in taxes.
How much tax do you pay? Find out at www.mokumokescius.lt
