The analysis of tax burden dinamics in Lithuania and europe union states

Abstract

The article deals with the analysis of the dynamics of tax burden in Lithuania from 1995 to 2011 compared with the EU tax burden. Similarities and differences of tax systems both in Lithuania and other countries as well as our state tax policy tendencies are provided in the article.The most taxed fields are estimated and tax burden tendency and possibilities of decreasing them are foreseen by analyzing and comparing tax burden rate, tax rates, tax revenue and related problems in Lithuania.The analysis of Lithuania and the EU economic conditions reveals that despite the fact that Lithuania is a rapidly developing country,but it is not a country with high and stable economic conditions. According to the data of the analysis, both in the past and nowadays, Lithuanian tax system requires some reform- it is not low-income tax that appears to be the cause of low tax rates, but great informal ”shadow” economy and tax evasion, too big taxation. Having simplified administrative procedures,Lithuania could become an attractive country to foreign investors.