Saturday , October 23 2021

For a Payment Card – Tax Benefits? – Y-News



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Money is often and completely unfairly portrayed as an obsolete social error, according to representatives of associations belonging to the Alliance of Consumer Organizations of Lithuania. This is because public discourse on financial issues is shaped by well-paid banking analysts and public information dissemination centers maintained by the banks themselves. Banks, which is based on a one-sided report on a seemingly rapid end to life's "deadlock," is referred to as "buka" by consumers and suggests that it resists the facts.

The popular stereotype of the banks about the lack of signs of our society, changing the network with new forms of liquidation, also does not support criticism, simply comparing Lithuania with other EU countries.

2018 data Source: European Central Bank

"Figures show that Lithuanians use bank cards on average to the same extent as residents of other European countries, for example, even more than the Germans or Italians, and slightly less than the Irish or the Spanish. […] Therefore, we are not the backbone, as we are trying to "cling" to our heads. It seems that banks are restricting people's access to money – mass closure of banking departments, no longer offering cash services, raising rates for cash services – leads to very selfish incentives to profit from mediation of people to pay for goods or services, "said the Secretary General of the Banking Clients Association of Lithuania Director Rūtenis Paukštė.

Representatives of consumer organizations point to their own beliefs about the benefits of non-monetary agreements. However, in its view, measures based on the principle of honey are not necessary to promote the consumer. According to Kestutis Kupšis, Executive Director of the Association for Fair Trade, the introduction of new electronic purchasing and sales accounting and cross-checking systems, whose implementation in Lithuanian companies appeals to the State Tax Inspectorate, should be relatively simple and introduce another constant, showing a discount to both sides of the transaction. the buyer and the seller when the transaction with the end user occurs through the cash register.

"Suppose a trader saves 1 percentage point of VAT payable if it is not paid in cash and the buyer receives a personal income tax rebate on the part of the card paid in. If we are talking about tax deductibility for domestic work, then why? not to set a higher goal – to reduce the network and also the size of the underground economy through tax incentives to use electronic money? The percentage point saved from the VAT tax is already a great incentive for the merchant to invest in the maintenance of the payment terminal . "

The State, in creating such incentives, initially risks not charging a small share of the tax, but is compensated for by significant increases in revenue later when consumers are aware of the benefits of electronic agreements. By lowering cash settlements, the parallel economy is shrinking as more transactions are tracked and traced. "However, this should not target bans, for example by restricting the use of the network, imposing a" maximum cash limit "on transactions and similar measures. Promotional measures that give the user tangible benefits of non-profit use are better And really does not run the propaganda repeatedly repeated by the bankers, the Lithuanians are clinging to the head that the net is gone and we have to follow the Swedish path (silencing that Sweden is probably the only country in the world that considers a fairly radical possibility of total liquid refusal.) People feel the fake knowledge of banks, still appreciate the net benefits, and even deliberately remain affiliated to the network, in order to keep banks as low as possible, "notes the head of the association For Fair Banking.

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