The competitiveness of a country’s tax system is instrumental in creating a favorable environment for foreign direct investment, stimulating business, and advancing societal well-being. Competition based on endogenous factors should not be perceived as unjust or unnatural.
The current legal system governing the interface between business and state administration is far too complicated, and interpretation of the law often depends on individual decisions of the tax authorities and courts. In order to function in this thicket of regulations, highly paid advisors are needed.
Lithuania has long been praised for its rankings in the categories of starting a business, registering property, and enforcing contracts, but it has also been criticized for a heavy administrative burden and red tape pervading the areas of dealing with construction permits, getting electricity, and paying taxes.
On June 13, 2015, the Slovenes celebrated the Tax Freedom Day – a day the Slovenes stopped working for the government and actually started earning icome for themselves. The “holiday“ illustrates how much taxes do the Slovenes pay each year.
For years, liberals have been struggling to lower and simplify Polish taxes. The results are, however, rather “moderate”, labour cost remains high, the dream of PIT flat tax – once a flagship project of the Civic Platform – is rarely even mentioned, and the recent governmental “temporarily” raised VAT rate to 23% seems to be becoming permanent. Every year, taxes and charges to the benefit of the state, not visible at first glance, are raised.