Economic situation in Lithuania

 Economic situation in Lithuania is quite stable and it’s gradually (pamazu) getting better. But it’s not as good as we wish. All the enterprises confronts (susiduria) with many difficulties such as unfavorable laws and tax system. Laws change very often and they aren’t favorable for business, especially for small and medium business. Standard of living is low, so the salaries are small. It’s difficult to live on minimum salaries. Plus the taxes are very high. So the most people earn money just for food and good health keeping. It’s quite difficult to live like that, so people look for extra work and try to earn extra money. But it’s not so easy, because the unemployment in our country is rather high. It is 9.8 percent and in the various districts (apskrityse) it is different. For example in Druskininkai, Akmene, Skuodas it is the highest – 13 - 14 percent. But in Kretinga and Vilnius it is just between 4 and 5 percent. As we can see, the unemployment is not tragically high, but it is enough high to make many social problems because doles (bedarbio pasalpos) are too small to live on them and not all unemployed can get it.
Another problem is our tax system. In Lithuania it is not favorable for developing business. Enterprises have to pay big taxes to keep their business: 30% social insurance tax, 15 – 24 % profit tax, 18% value added tax, road tax. So as we can se, very little is left for developing business. That’s why very many enterprises are forced to cheat on taxes. They employ the part –...

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