In 2013, alone Lithuania's foreign investment increased by around LTL 1 billion (EUR 0.29 billion) and reached the LTL 8 billion (EUR 2.32 billion) mark. Investors say they are moving because tax environment in Lithuania is unfavourable.
However, the Government does not think that conditions are worse than elsewhere. Nevertheless, when business moves so does a part of income, social insurance and other taxes which would otherwise supplement the budget.
Some economists relate this not only to unfavourable tax environment compared with other countries, but also with the fact that businesses lose expansion opportunities as the number of inhabitants decreases in Lithuania.
