| Abstract [eng] |
Master’s thesis analyses all the taxes collected by the municipalities of the Republic of Lithuania: personal income tax, land tax, real estate tax, inherited property tax and environment pollution tax. The theoretical part deals with significance, functions of the taxes collected by the municipalities, their collection to budgets as well as inter-budgetary distribution and related issues. The research part offers structural analysis of the taxes collected by Lithuanian municipalities, it is established that the main income of municipal budgets comes from the tax income and grants. The need in grants grows up in the crisis period and reduces during economic recovery. Seaside municipalities need the least grants, so they are sufficiently independent. The main part of municipal tax income consists of the personal income tax (PIT). Other income from taxes jointly make as little as about 3-4 per cent of income. Analysis of the dynamics of the taxes collected by the municipalities shows that economic cycles play a role in collection of personal income tax and environment pollution tax, when income from land tax and real estate tax depends on changes in the tax rates. It is established that collected income varies due to the same factors independently from the collected income amount. Analysis of inter-budgetary distribution of personal income tax shows that the “donor” municipalities lose sufficiently large monetary funds because part of PIT is transferred to the treasury account. Vilnius City Municipality, in the case of receiving all the income from personal income tax could cover all its costs and even have some free funds left. Transferring of a part of the PIT to the treasury account both undermines municipal independence and reduces the municipalities’ ability to add to job creation or investment attracting. It has been found that if Lithuanian municipalities received all the income collected from personal income tax, they could cover 60 to 70 per cent of their costs, so one can say that they are not financially independent. In order to analyse the changes in collection of income from personal income tax, the largest attention should be paid at the average monthly salary, minimum monthly salary, official level of unemployment and number of employed population. These variables have the largest effect on the changes in collection of income from personal income tax: the changing variables change amount of income coming from this tax the most. |
