Local Taxes in Lithuania in the Context of Integration into the European Union
Local Taxes in Lithuania in the Context of Integration into the European Union

Summary/Abstract: The paper deals with a possibility of developing fiscal decentralization and its main part – the institution of local taxation in Lithuania. General principles of tax distribution between the state and local authority levels are discussed. The experience of modern democratic states and interwar Lithuania is considered. Today’s situation in Lithuania of local taxes is analyzed. The legal basis of local self-government in Lithuania corresponds to the requirements of the European Charter on Local Self-Government but the institute of local taxes is developed insufficiently in Lithuania. The means which will enable to develop local taxes institute to the European level are proposed, i. e. to legalize of local taxes by corresponding laws, to legalize real estate tax as the main local tax developing its basis and opportunities of the self-government to introduce tariffs of greater limits to legalize, a part of income tax for the inhabitants, attributed to self-government as local tax empowering it to introduce tariffs within statutory limits and new local taxes, for example, legalizing taxes on property for the legal persons and on big property of the physical persons.

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