European Commission (EC) Vice-President Valdis Dombrovskis has stated in Vilnius that Lithuania should give up some value-added tax (VAT) privileges amid projected growth of state spending, as well as improve the collection of VAT and residents’ income tax. He also stressed the substantial progress made by Lithuania in the implementation of earlier EU recommendations. In his words, income inequality in Lithuania is among the greatest in the EU, and the gap could be bridged by a more efficient tax privilege system.
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