Economists say tax changes ‘not cosmetic’, yet timing is wrong

The tax changes presented by the Ministry of Finance on Tuesday are not ‘cosmetic’ as they address many long-standing problems and discriminatory ‘nonsense’, but the time for tax reform is not a favourable one and a very heated debate awaits, economists say.

Chief Economist with INVL Asset Management, Indrė Genytė-Pikčienė, singled out the Government’s clear aim of horizontal equity as it seeks ensuring that the tax burden would depend on the level of income rather than the form of activities.