Analytics, Financial Services, Legislation, Lithuania, Shadow economy, Taxation
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Sunday, 22.02.2026, 08:35
Swedbank: with elimination of shadow economy Lithuania could collect additional LTL 7.5 bln
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According to head of the Personal Finances Institute Odeta Bloziene, with elimination of the shadow, the amount of money collected only from taxes on consumption would be big enough to cover the revenues from personal income tax (PIT) collected from residents, writes LETA/ELTA.
"And if we also included social security payments, profit tax paid by employers on behalf of their employees and other taxes, the sum of additional tax revenues would grow even more," she said.
The expert says that a possibility of abolishing PIT in this case is only a theoretical example to show the level of the shadow economy in the country, while in practice it is hardly possible to eliminate the shadow.
According to the data of the Lithuanian Free Market Institute, the shadow economy in 2011 accounted for 27% of GDP. The highest share of the shadow was related to smuggling.
Swedbank estimates that the state loses the most of tax revenue because of illegal jobs.
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