![]() |
| NEWSLETTER OF THE LITHUANIAN FREE MARKET INSTITUTE |
|
Banking Corruption Employment Policy EU Integration Financial & Capital Markets Government Macroeconomic Survey Monetary Policy Pension Reform & Social Security Philanthropy Private Enterprise Privatisation Regulation Self-Government Tax and Budget Policy Trade Policy Miscellaneous
Home © LFMI, 1996 - 2003. All rights reserved. |
2000 January - March LFMI
"The Free Market", 2000 No. 2 LFMI analysed a newly proposed draft law on pollution tax, providing for the introduction of a new tax on glass and packets. LFMI submitted to the parliament a policy paper, outlining the fallacies of the proposed taxation and proposing to reject the bill. LFMI argued that a packet in itself is not a pollutant and its harmfulness depends solely on its further use. LFMI also noted that the new tax would increase the tax burden, the prices of goods, and bureaucracy. On January 14, Elena Leontjeva and Rūta Vainienė participated in a press conference held by the Sunrise Commission at the Economic Ministry and gave interviews for TV3. Elena Leontjeva took part in the January 18 sitting of the Sunset Commission, and on January 20 LFMI's president met with Prime Minister Kubilius to discuss the work of the Sunset and Sunrise Commissions. On January 26, a sunrise working group for the reduction of bureaucracy, headed by LFMI's Vice President Ugnius Trumpa, held a meeting at the LFMI. Interviews were given for LNK and TV3 televisions. LFMI analysed and commented on a newly proposed strategy for poverty reduction in Lithuania. LFMI analysed a newly proposed bill on state aid that regulates the provision of state aid to economic agents. In a policy paper submitted to the government on February 9, LFMI approved of the declared goal to regulate and restrict state aid in order to prevent it from distorting competition and trade. However, LFMI proposed not to limit the law to the regulation of state aid for economic entities and to cover non-profit organisations and municipal and state institutions as well. State aid, LFMI noted, should be rendered in exceptional cases and strictly in accordance with the principles prescribed by law. LFMI formulated and presented to the government its position on the problems related to the acquisition of residential property in Lithuania. In a press release of January 28, LFMI urged the government of Lithuania to liberalise relationships between milk producers and processors and to remove price regulations applicable to agricultural production. LFMI analysed the Law on Medical Practice which does not allow foreign physicians to carry out medical practices in Lithuania for other than teaching or charity purposes. LFMI concluded that by imposing such restrictions the law safeguards not the rights of patients to effective treatment but the privileges of local physicians. These regulations inhibit the rise of medical culture and the improvement of the quality of medical services. LFMI submitted to decision-making authorities a policy paper, proposing to amend these discriminative and defective provisions of the law. LFMI issued a press release on January 27, criticising the government's plans to introduce cash registers for private passenger carriers. LFMI also proposed to privatise state and municipal transportation companies. On January 12, Elena Leontjeva participated in a government sitting, and comments for the media, on amendments to the law on value added tax. On January 24, the Verslo Žinios paper published an article by LFMI's president on the application of value added tax to exported services. Rūta Vainienė commented on excise duties in the January 24 Respublika. Elena Leontjeva took part in a meeting with Prime Minister Kubilius January 14, organised by the Forum of Foreign Investors. On March 29, the Government of Lithuania approved, under the Sunrise Programme, a package of policy measures to solve the main problems of the tax code, prepared by a working group headed by LFMI's Vice President Rūta Vainienė. The proposals included exemption of investments from the corporate income tax, recognition of bad debts, exemption of services rendered abroad from value added tax, and others. The Cabinet is expected to endorse the most urgent policy measures by the middle of the year. Guoda Steponavičienė commented on the increase in the rate of social security contributions for sole proprietors in the January 18 Verslo Žinios. On January 24, she spoke about social security reform on the Laisvoji Europa radio. On March 31, LFMI issued a press release welcoming the abolition of minimal customs valuation prices. This regulation posed a serious barrier to foreign trade by artificially increasing the prices of imported goods, complicating customs procedures, limiting consumer choice and causing discontent of Lithuania's trading partners. LFMI analysed the forms of several statistical reports that enterprises must submit to the Statistics Department. It was concluded that detailed disclosure of statistical information inhibits enterprises' activities, and the quality of the reported data is doubtful. LFMI proposed to simplify the rules of statistical disclosure. Remigijus Šimašius commented on privatisation for the LNK television and the Verslo Žinios on January 14.
|