Analytics, EU – Baltic States, Financial Services, Legislation, Lithuania, Taxation

Dalia Grybauskaite in Brussels, 22.05.2013. Photo: lrp.lt

"Tax evasion is a major worldwide problem. The total loss of national budget revenues of the EU member states due to such evasion is estimated to be around one trillion euros a year. It is therefore necessary to work internationally to make tax evasion more difficult. This is also important seeking to improve the EU's competitiveness," the President said.

According to the President, tax evasion is a major problem in Lithuania as well. Macroeconomic indicators show that more taxes should be collected in our country judging by consumption volumes. Excise goods, VAT evasion and illegal wages are problem areas in Lithuania.

The main tool to fight tax evasion is exchange of information between all member states and at the global level. The instruments also include enhancing cooperation of tax administration authorities. The European Council will take stock of the progress in implementing these measures during Lithuanian presidency.

Discussions on the fight against tax evasion are underway at international high-level meetings and international organizations: the Group of Eight (G8), the Group of Twenty (G20), and the Organisation for Economic Co-operation and Development (OECD).