Transparency remains challenge for Lithuania: president

Transparency remains a big challenge in Lithuania, considering the recent examples of protectionism, political connections, corruption in public tenders and other defects that prevent progress, Lithuanian President Dalia Grybauskaite said Wednesday.

She was speaking after meeting representatives of Lithuanian transparent business association Baltoji Banga (The White Wave) and announcing a start of campaign targeted against the underground economy in the Baltic country.

"Corruption and people's robbery are hiding behind the shadow economy; it means that the country's progress is slower, residents earn less and the state can give less services for its citizens," Grybauskaite was quoted as saying in a statement released by the presidency.

According to the head of state, it is necessary to encourage society's intolerance regarding corruption, therefore not just punitive measures are needed, but also public education.

Meanwhile, Lithuanian Prime Minister Algirdas Butkevicius on Wednesday said in 2015, the share of the underground economy in GDP was reduced by 1.3 percent or 480.9 million euros (539 million U.S. dollars) in monetary terms.

Butkevicius added that in 2016 the smart tax administration system will be gradually launched and should augment the fight against unfair tax practices.

Some Lithuanian economists argue that high taxes are among the main reasons behind shadow economy activities.

"In the areas where taxes are the lowest, people do not avoid these taxes; they don't want to stay in the shadow," Ruta Vainiene, Lithuanian economist, was quoted as saying by local broadcaster Ziniu Radijas.

According to her, low revenues and expensive public services are pushing residents to the underground economy activities.

Various events and initiatives against shadow economy are taking place in Lithuania this week. Enditem