Local taxes in countries of the European Union

Abstract

The article deals with the possibility of development fiscal decentralization and its main part-local taxes institution on the example of Lithuania. General principles of taxes distribution between state and local authority levels are discussed. The experience of modern democratic states is considered. Today situation in the sphere of local taxes and correspondence of the legal basis of local self-government in Lithuania to requirements of the European Charter of Local Self-Government is analyzed. The situation in Lithuanian municipalities is compared with situation of other countries of the European Union. It makes the conclusion that the local taxes institute in Lithuania is developed insufficiently. It is proposed the means which will enable us to develop local taxes institute until European level, i.e. to legalize of the local taxes by the corresponding law, to legalize the real estate tax as the main local tax developing its base and opportunities of the self-government to install its tariff in more greater limits, the part of the income tax of the inhabitants, attributed to the self-government to legalize as a local tax, empowering an opportunity to install its tariffs within statutory limits the new local taxes , for example, the taxes to property of the legal persons and the magnificent property of the physical persons must be legalized.