With Lithuanian authorities considering converging the taxation of self-employed and salaried income, some self-employed people may begin to look for a job and others may migrate into the shadow economy, the business daily Verslo Zinios reported on Thursday.
© Shutterstock

"If the personal income tax is raised further, some people may give up their business and start looking for a job; others will become unemployed, and still others may retreat to the shadow (economy)," it quoted Swedbank Lithuania's chief economist, Nerijus Maciulis, as saying.

President Gitanas Nauseda has proposed to beef up spending on social protection and has identified an increase in the taxation of non-salaried income as a source of raising funds for the purpose.

Simonas Krepsta, the president's economic advisor, has told BNS that Nauseda's proposals are related to higher taxation of self-employment income as well as capital gains and dividends.

It is prohibited to copy and republish the text of this publication without a written permission from UAB „BNS“.

Vasiliauskas calls on MPs to turn to ECB over banking tax

Vitas Vasiliauskas , board chairman of the central Bank of Lithuania , has called on lawmakers to...

Fake or true: your coffee might contain grounded cockroaches

In past months some global media shocked their readers by claiming that grounded coffee might...

Nauseda: state bank shouldn’t be taboo

The existing situation in the Lithuanian banking market makes one to start thinking about the...

Lithuania not considering 'century bond' yet

The Lithuanian Foreign Ministry sees no need for issuing ultra-long debt yet, but might consider...

Cabinet backs retail and bank taxes

The Lithuanian Cabinet on Wednesday backed in principle new taxes on bank assets and retail...