The complexity of the advance payment of corporate income tax (CIT) creates administrative burdens for businesses and hinders the path to greater competitiveness. To ensure the stability of the state budget and higher tax revenue collection, the CIT regime was complemented by an advance CIT in the early years of the restoration of Lithuania’s independence. Companies pay it before profits are earned, thus crediting the State.

The Lithuanian Parliament rejected the president’s proposal to allow people to withdraw a quarter of their pension savings. However, a similar proposal will be considered in return. Politicians are, of course, inspired only by good motives – the desire for freedom and goodness. But freedom goes hand in hand with responsibility, which is valid every day and even more so in the long run.

Lithuania ranked ninth in the International Tax Competitiveness Index 2023. This country ranked eighth last year and fourth in 2019. Why is it sliding down instead of finally rising up the pedestal? The International Tax Competitiveness Index assesses tax systems on their simplicity, transparency, neutrality – i.e., fairness to specific activities and income levels – and stability.

Who should be taxed, how should they be taxed and what purpose should it serve? These questions are as old as the world. To help answer them, in his 1776 work “The Wealth of Nations” the Scottish economist and philosopher Adam Smith formulated four principles of taxation. According to him, taxes should be proportional to the benefits that a person derives from belonging to society.

Under Article 38 of the Constitution of the Republic of Lithuania, the family is the basis of society and the State, and family, motherhood, fatherhood, and childhood shall be under the protection and care of the State. Even though the Constitution provides that families are the basis of society and what the concept of marriage is, there are still disagreements between legal scholars, lawyers, and politicians as to what ‘family’ actually means. The state’s obligation to protect families under the Constitution entails not only providing a regulatory framework for creating a family, but also the ability of the family members to make their own decisions in deciding what is best for them and their families.

Economic freedom in the world has declined to a record low, shows the Economic Freedom Index published by the Fraser Institute. The recent World Economic Freedom Index is based on data for 2020 but it shows a clear trend: as the government sector grows, it is becoming harder for citizens and businesses to breathe. The Fraser Institute analysts say this is largely due to the COVID-19 pandemic.