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International Internet Magazine. Baltic States news & analytics Friday, 29.03.2024, 09:36

Lithuanian retailers lose EUR 142 mln due to e-trade with third countries

BC, Vilnius, 18.06.2020.Print version
Lithuania's retail sector lost 142 million euros in revenue, or around 1 percent of the total retail turnover, due to residents' trade with third countries, mainly China, a survey by public policy analysis and consultation company ESTEP has revealed, cites LETA/BNS.

An additionally-generated turnover of 142 million euros, lost due to trade with third countries, would have allowed creating additional 1.574 jobs.


Traders are making use of regulatory loopholes to avoid taxes by declaring a lower value of a good than it is in reality, Titas Budreika, an expert of ESTEP, said.


"Being aware of certain tax concessions are taking legal and illegal steps, for example, by declaring a good's lower value than it is in reality, to make use of the existing concessions," Budreika told a press conference on Thursday. "Due to the existing concession, the state budget is losing revenue, and this way uneven competition conditions are also created."


All EU countries are facing the same problem, he said. The European Commission estimates that members states lose around 7 billion euros due to trade with third countries.


The majority of foreign parcels Lietuvos Pastas (Lithuanian Post) received last were arrived from China, making 64% of the total.






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