IMF Calls on Lithuania to Increase Tax Revenues

2025-10-01 05:42:53

(MENAFN) The International Monetary Fund (IMF) is calling on Lithuania to increase tax revenues, warning that current fiscal policies fall short of securing long-term budget stability, especially as defense expenditures climb and the population ages, according to a Lithuanian business news outlet.

In its latest assessment, the IMF points out that Lithuania’s tax intake is among the lowest in the European Union, amounting to just 22.3% of the country’s gross domestic product (GDP). This figure lags behind the EU average of 26.1%, raising concerns about the country's fiscal resilience.

Moreover, the fund estimates Lithuania could unlock as much as 9% of GDP in untapped tax revenue by overhauling its current tax structure.

Reforms already passed earlier this year are projected to yield a modest increase in revenues—an estimated 0.6% of GDP, starting in January 2026, the IMF said.

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