OECD head calls on Lithuania to fight informal economy
The secretary general of the Organization of Economic Cooperation and Development (OECD) says that Lithuania, the organization's newest member, must combat the informal economy.
"You should reduce taxing of low income level and improve tax administration. Informal economy is a problem for all countries in the world. But in an ageing society and low productivity country, you really have to fight the informal economy," Angel Gurria said at a news conference in Vilnius on Thursday.
Gurria noted that Lithuania's per capita labor productivity remains below the OECD average.
"Lithuania's export is doing better, but it is mostly concentrated in low level added value areas. Lithuania has an ageing problem and the dependency ratio would continue to grow. This is something you should prepare in terms of labor laws, health laws and financial consequences," he said.