The tax reform proposed by the government has outraged small entrepreneurs: such a person does not even earn the minimum wage

This was discussed by Mindaugas Lingė, Chairman of the Budget and Finance Committee of the Seimas, and Dalia Matukienė, Chairwoman of the Council for Small and Medium Enterprises, in the news radio program “Actualusis Interviu”.

It is important to create the conditions for a competitive system

As Mr Lingé said, the European Commission and the Organization for Economic Co-operation and Development (OECD) believe that the current fixed tax ceiling of 45,000 euros is too high.

“It also creates a negative environment for competition, because by operating under one form of taxation, by carrying out similar activities, one obtains a tax advantage compared to similar activities carried out, by working under other forms, and if individual activity shows signs of continuity, it is a continuous activity, an active activity which is carried on all the time – we ourselves understand that even this competitive environment must be imposed fairly. The search for this horizontal justice is the one of the fundamental proposals for change”, he explained.

According to the interlocutor, this change should affect less those who come together and continue to work in accordance with the essential mission of small businesses and individual activities.

“It’s a way of finding yourself, it’s the smallest, a kind of extra income, whether it’s at retirement age or just having talent, but doing other things. and the turnover is not high.While we are already talking about opposing not only the reduction but also the expansion and increase proposal, you understand, we will have this competitive environment and it will be again distorted,” Lingė said.

According to him, it is precisely for this reason that curious situations sometimes arise.

“The association writes in its letter that it is impossible for traders to survive with the declared 20,000, to remain in business, and if we look at their own declarations, 80 percent declared that they had achieved a figure of cases of up to 20,000 last year. “Where is the overshoot then? Is it wrong in the arguments that it is impossible to survive, or do the statements presented show something else?” of the Budget and Finance Committee of the Seimas.

According to him, the most important thing today is to create the conditions for a competitive system.

“We must restrict what is necessary for the small, the smallest, and leave an attractive tax system. If we want to live actively, precisely thanks to this form of activity, then this taxation must be linked to the profits made, as c is the case for other shapes as well,” the interviewer said.

Ministry of Finance

Reproaches to power

According to D. Matukienė, the Council for Small and Medium Enterprises has repeatedly approached the ministry to request information on some issues of concern.

“On several occasions we have appealed to the government and the Ministry of Finance, asking them to provide data on the actual amount received by those who deal with business licenses. What happened to these plumbers and builders when, as I said, the builders association wrung its hands to get the building permits revoked and it was done, where did those plumbers and builders go? are reconverted into individual activities, how many work in other forms, how many are in the employment service and how many are in the shadows?

This big order – that’s what perplexes me the most about this situation, because on the small business side, we never said that we had to close a factory because it was polluting the air, that we had to, for example, prohibiting the production of certain electrical products. batteries because there is lead or something else are harmful to health. No one in a small business has ever heard such phrases. We also didn’t hear about it because most of the smaller ones were closed during the pandemic, while all the other big ones were in operation,” she said.

Business, documents

According to the interviewer, small businesses have never talked about the fact that big businesses should not receive support, subsidies or the like, so what is happening now raises even more questions.

“I have no idea what the current benefits are and for whom. What Reverend Linge said about change, do you understand that this is the simplest form of business? You are come, the municipality has determined in which branch of activity, type of business there is a municipal tax, which is called GPM and the person pays it, he pays this tax, he pays the number of days during which he will work for health insurance and he pays for VOD – up front,” shared his view.

According to her, Mr. Lingė is wrong when he asserts that the new changes will create the conditions for competitiveness.

“If 45 thousand in exchange, it’s here with all the costs. It’s not a profit. The profit would be around 7-8 thousand euros. Imagine, this person does not even earn the minimum wage, so what are the profits here, where does she earn a lot? Let’s see how much the 700 people who sit in the Bank of Lithuania earn?” D. Matukienė said.

Please look at the facts

The Chairman of the Budget and Finance Committee of the Seimas, Mr. Lingė, in response to the opinion expressed by D. Matukiene, asked to take the facts into account.

“Now, last year, 84 percent of all business license holders said they earned up to 20,000 – that’s the total concentrated mass, although the limit is 45,000.” We understand that this is for the little ones, everything is in order and nothing affects those who earn up to 20 thousand. It will always be possible to do some form of activity with a work permit, but when we go into wider waters, when it becomes a source of income, we understand that the effective rate must be fairer for others ” , he said.

According to him, certain professions may make different decisions.

“There are certain professions where one can choose. The same profession of cabinetmaker can be with a commercial license and it is possible to have an individual activity and have your own business. In addition, among other things, it will be all small once again.Now it is no longer necessary to state that there are small businesses working with commercial licenses and others working in other forms, for example sole proprietorships that do not do not have a turnover of more than 300,000 per year – it is also a small business. , only they already operate under a different tax regime, so other fees are payable.

This is more related to earned income than to the form of activity and here a constant limitation of international organizations and recommendations is underlined where we are stuck in Lithuania. We are too attached to how income is earned, but not what income is earned,” Lingė explained.

According to him, no principled struggle should take place in this place.

“I understand it’s a privilege, that’s why it’s difficult. In Latvia, according to company certificates, a fixed amount can only be paid up to 3,000, so our 20,000 are still very We understand that in general the organizations themselves give us stricter recommendations. benefits,” he said.

According to Mr. Lingė, all changes must take place gradually and with a clear understanding of who is the smallest company and who, however, receives income little different from those who carry out other activities. However, according to him, we see that the system is not correct.

“The purification of this justice is underway,” he said.

You can find the entire program on the News Radio portal:

Source: The Delfi

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