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More than 200,000 Lithuania's residents are unemployed but businessmen keep saying that they cannot find employees. The unemployed do not want to work for a minimum monthly wage and employers claim that they cannot afford to pay more. Employees are furious seeing that what their executives say often do not reflect reality. It is said that luxury items and trips abroad of managerial staff and their family members are necessary for economic activity but they are often written off as costs of business. In this way profits are artificially reduced, thus fewer taxes are paid to the budget.
State Tax Inspectorate (VMI) got interested how such purchases and services help companies earn profit. It has been known long that business buys airplanes, yachts, boats, snowmobiles and other things that are not necessary to seek profit but they are used by leading corporate employees and members of their families. Why VMI is only now decided to check whether companies do not abuse it? Is it
a reflection of the new Government policy or is it just a coincidence? RESPUBLIKA
Everyone has to pay compulsory health insurance: the employed and the unemployed, students and retired persons, individuals engaged in individual or agricultural activities. Although such health care system is acceptable to public authorities, people have to pay the same fee several times. However, one should not expect after paying more taxes to get to a doctor without waiting in queues or that one will recover faster. Representative of National Health Insurance Fund Lina Businskaite assures that according to the current system, a person who receives income under different contracts, i.e. under the different forms of employment, is required to pay taxes, including compulsory health insurance from all income and no exceptions under the law apply. VAKARO ZINIOS
"Actually it is time to decide which field and to what extent is financed from the state budget and what is funded from the compulsory health insurance fund. As we pay compulsory health insurance tax we contribute to the health of others: money goes to the general budget, they are not allocated to individual person. Hardly anyone will argue: healthy society should take care of its members and their health. A few would argue about the fact that this "taking care of each other system is far from perfect - we have to make it more efficient and fairer," says Minister of Health Vytenis Povilas Andriukaitis. VAKARO ZINIOS
Under a request of Lithuania's bank, a study has been carried out which showed that 34 percent of residents do not have any savings, 33 percent of people's income do not cover the expenses, 70 percent calculate compound interest incorrectly. 43 percent of people read contracts when they carry out financial transactions and otherwise borrow irresponsibly. Not only are these numbers shocking. Apparently, 11.6 percent of all Lithuanian households owe to banks, i.e. 161,000. 10 percent of them encounter difficulties of paying back monthly instalment. Further 17.5 percent of households have fast credit loans, i.e. 242,000. Portfolio of fast credit loans stands at LTL 100,000 (EUR 28,962). The total consumer credit market exceeds LTL 2 billion (EUR 579.2 million). RESPUBLIKA