Abstract

Taxation of residential property is difficult to be implemented in many jurisdictions and in this respect Lithuania is not an exception. Many taxpayers do not comprehend why property should be levied by the government. Indeed, any owner of real estate would usually resist to any attempts to increase this tax burden. However, even when the threshold is once overstepped and a new unpopular statutory framework is introduced, the government still faces new dilemmas regarding the administration of this tax. Sometimes weak tax administration but not the tax itself undermines the credibility of the public. Commercial premises as well as land have been continuously levied in the Republic of Lithuania since 1990. Thus, the taxes paid by enterprises and the land tax were not a big issue of public debate in Lithuania. The burden of this tax was not very significant in the light of all taxes paid by enterprises or land owners. The most problematic issue remains the taxation of residential property