Pridėtinės vertės mokesčio tarifo analizė lietuvoje darnaus vystymosi kontekste
Value added tax analysis of Lithuania in the context of sustainable development

Summary/Abstract: Value Added Tax (hereinafter - VAT) is a usage tax. In Lithuania this tax was introduced in 1994, and had been 18 percent tariff rate remained 2009. During the fourth quarter of 2008 the global recession also affected Lithuania. In order to improve the economic situation the measures of fiscal policy were taken. The reform of taxes had to be one of the basic measures of the Government of the Republic of Lithuania and its aim was to increase taxes. Value added tax (VAT) forms the largest part of the budget, consequently, from 1 January, 2009 VAT was raised from 18 percent up to 19 percent, and from 1 September to 21 percent. As VAT is usage tax, the amount of the adjustment control inflation rate and unemployment rate. Inflation rate and unemployment rate changes in the period of 1999 – 2008 are analyzed in this article. According to the dynamic of these two indicators, it was noticed that VAT rate should be changed. From macroeconomic theory it is knowing that inflation rate grows when unemployment rate decreases and vice versa. But in this article it was noticed that these two macroeconomic indicators were decreasing simultaneously. However increased VAT rate on time, maybe it would have been possible to keep a low unemployment rate when inflation rate started to increase. Also, maybe at that time it would have been possible to reduce stagflation rate when oil prices in the world started to increase in 2008. VAT is one of fiscal policy criterion which has impact on economy. Economic sphere is one of the sustainable development elements. Sustainable development is made up by three spheres: economic, social and environmental. Low VAT rate reduces unemployment rate in short term but high VAT rate reduces inflation rate in medium term. So, VAT rate for sustainable development is needed change on time. This article shows that Lithuania did not increase the VAT rate to 21 percent because it increases all creating an unbalanced economy, adversely affecting both the production level, as a whole and macroeconomics. Sustainable development implies that should be equal attention to economic, social and environmental area of the country to develop harmoniously. However, a VAT increase shows that the recession is a period of sustainable development neglected. VAT rate increase initially due to price increases, but price level and then tends to decline as a recession in the country and smaller Consumer incomes fall on the higher prices of goods consumption. So increasing unemployment and the rate of production growth should be to incentive fiscal policies, namely reduction of tax rates, especially VAT. The standard VAT rate is available only to certain goods and services. However, Lithuania has made reduced VAT rates. As the sustainable development, the VAT rate increase during a recession creating an unbalanced relationship between the three areas: economic, social and environmental. However reduced rate of VAT on some goods may be maintained prices are unchanged, and thus lower inflation. Goods the imposition of a reduced VAT rate to stimulate consumption in the short period, but over the medium term would affect for inflation level. Therefore, taking into account the economic situation and growing inflation should increase standard size rate of VAT tariff. VAT tariff size has influence not only to economy but helps to avoid an environmental and economic shocks, for example, air pollution, too high inflation rate and other problems, i.e. maintaining a stable economic situation to pursue sustainable development policies.

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