The European Commission calls on Lithuania to improve its tax system and deal with demographic problems, which pose challenges to the country's growth potential.
© Shutterstock nuotr.

The Commission makes these and other recommendations in a report analyzing member states' economic challenges, which was published on Thursday.

"The tax system has not exploited the scope available for the use of growth friendly taxes. Tax revenue is to a large extent dependent on indirect and labor taxation, while the percentage of revenue contributed by environmental or wealth taxation remains very low," the EU's executive body said in its report on Lithuania.

The country's growth potential faces structural challenges due to an ageing population, emerging professional skills shortages and low investment, particularly into research and development, it said.

In its forecast presented in early February, the Commission said Lithuania's GDP would grow 3 percent this year and that growth would accelerate to 3.4 percent next year.

Naujienų agentūros BNS informaciją skelbti, cituoti ar kitaip atgaminti visuomenės informavimo priemonėse bei interneto tinklalapiuose be raštiško UAB "BNS" sutikimo neleidžiama.
Leave a comment
or for anonymous commenting click here
By posting, you agree to terms
Read comments Read comments

Ambassador to Russia remains recalled 'until separate decision' (1)

Remigijus Motuzas , Lithuania's ambassador to Russia, remains recalled from Moscow "until a...

Constitutional Court: intelligence data can be used in official misconduct probes

The Lithuanian Constitutional Court ruled on Thursday that criminal intelligence data can be used...

'Church show' case goes to court (1)

A criminal case in which four people are charged with disturbing a religious service at a church in...

European Union to reform the rules on Schengen visas

The European Parliament adopted the Commission's proposal to reform the rules on Schengen visas ,...

Prime Minister sees no reason to fire Motuzas as ambassador to Russia

Lithuanian Prime Minister Saulius Skvernelis said on Wednesday that he sees no reason for dismissing...