Gediminas Davulis


The article deals with the possibility of developing fiscal decentralization and its main part—the institute of local taxes in Lithuania. The concept of local taxes and its place in state is considered. General principles of tax distribution on the state and local government levels are discussed. Experience of modern democratic states and interwar Lithuania in the sphereof local taxes is presented. The budget’s structure of Lithuanian municipalities, from the point of view of local taxes, is analysed in the period of the last few years. The comparative analysis budget structures of Vilnius and other capitals of the Baltic countries are performed. The means proposed will enable us to develop the institute of local taxes up to the European level, i.e. the taxes allocated to the self-government to legalize as a local tax, rendering an opportunity to set its tariffs within the statutory limits and some new local taxes, for example, the taxes on the property of legal persons and that of luxury of natural persons, could be legalized.