July 12, 2014 Print

Is there a cure to an unstable tax system? If so, Lithuania needs it. In the last decade, the laws on the five main taxes of Lithuania were changed 193 times. Kaetana Leontjeva, analyst at the Lithuanian Free Market Institute (LFMI), recently wrote an article for Lithuania’s IQ Magazine. In the article, Leontjeva calls for a change to the instability in her country’s tax system. She points to the Mexican government's recent tax level agreement as an example of a possible solution to her country's situation. In the article, Leontjeva writes about how the federal government of Mexico recently signed an agreement to keep the taxation system of the country stable until the end of 2018. She said, “By committing itself to not change the tax levels, the Mexican government created an environment favorable to growing prosperity of the citizens. The agreement sent a strong and serious message to the existing and the potential creators of prosperity that they will not be subject to a sudden tsunami of taxes.” Leontjeva suggests the people of Lithuania would benefit from a similar commitment to stabilize its tax system. Read the full article here. To learn more about LFMI, an Atlas Network partner, click here.