RESEARCH OF TAX SYSTEM OF INDEPENDENT LITHUANIA

Lithuanian tax system had many reforms since its creation: tax base was expended, tax rates were changed, new laws and taxes were created, custom control and tax administration process became more strict, new taxes were putted on foreign and lottery companies, taxes were putted on dividends, shares  bonds and other securities gain. All tax reforms in Lithuania were carried out in order to increase public revenue, to redistribute tax burden, to increase competitiveness and to simplify tax administration process. In this article Lithuanian tax system development was evaluated, also main development stages were excluded. Main reasons of these changes were presented. And in the end  some recommendations were given: because of the high labor charges and the existence of the shadow economy State Social Insurance Fund should divide fees equally for employers and employees; because of direct and indirect taxation, tax burden increased, so it is necessary to reduce VAT to 18 percent, to former level. DOI: https://doi.org/10.15544/ssaf.2012.2