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International Internet Magazine. Baltic States news & analytics Thursday, 28.03.2024, 17:44

Lithuanian EU Commissioner: tax reform must be implemented together with new social model

BC, Vilnius, 10.09.2015.Print version
European Commissioner from Lithuania Vytenis Povilas Andriukaitis says the protest of trade unions against the liberalisation of labour relations is justified because wage growth in Lithuania has been slow throughout the whole period of independence, informs LETA/ELTA.

According to him, proposed legal amendments should be implemented together with a tax reform.

 

"Let us not turn a blind eye on why so many working people have left Lithuania – because wages are falling. Are there no possibilities to raise wages in the private sector?" – Andriukaitis said in an interview to radio Ziniu Radijas.

 

According to the European commissioner, the perception that workforce may be paid a minimum wage has resulted in a big emigration wave and the lack of skilled workforce in Lithuania.

 

In May, the European Commission issued recommendations to European Union member states. Lithuania was recommended to take into account the worsening demographic situation and, as a result, the changing needs of the education system and the labour market. The Commission recommended Lithuania to reduce tax burden on the lowest earners and transfer it to sources whose taxation has lower impact on economic growth.






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