Mokestiai

Mokestiai are compulsory payments imposed by the state or local authorities on individuals, households, and businesses to fund public services and state functions. The term covers direct taxes, such as gyventojų pajamų mokestis (GPM, personal income tax) and pelno mokestis (corporate income tax), as well as indirect taxes like pridėtinės vertės mokestis (PVM, value-added tax) and akcizai (excises). Local taxes include nekilnojamojo turto mokestis (real estate tax) and žemės mokestis (land tax). In the Lithuanian system, social insurance contributions are also a form of taxation linked to financing pensions, health care, and other social benefits.

Taxes are collected by national and local authorities, with the primary oversight by Valstybinė mokesčių inspekcija (VMI, State Tax Administration). Revenue collection relies on mechanisms such as withholding at source (for wages and salaries), self-assessment, and periodic declarations and payments by taxpayers.

Tax policy aims to fund public services, ensure fiscal stability, and provide redistribution. Rates, allowances, and exemptions are established by law and may be adjusted in annual budgets or reform packages; individuals may claim personal tax allowances and various deductions, while businesses may receive incentives or reliefs.

Public compliance and administration are shaped by EU rules on value-added tax and cross-border trade, as well as national legislation. Mokesčiai thus constitute a central element of Lithuania’s fiscal system, balancing revenue needs with economic and social policy objectives.