Graphic Model Regulating the Application of Land Site Taxation Deductions


  • Gintare Jakstonyte Kaunas University of Technology
  • Vytautas Boguslauskas Kaunas University of Technology


tax system, graphic model, fiscal policy, land site taxation.


Existing conditionally sizeable possibility of interpretation of tax legislation and covering regulations of the Republic of Lithuania, abundance of practical employment subtleties and concretization makes extremely important the knowledge of taxpayer regarding which specific deductions, when and how can be applied while calculating the payable sum for one or another tax. Employment of provided taxation deductions not only provides proper environment for tax system existentialism, but also creates added value for the taxpayer. Deficiency of economic and accounting knowledge of the latter enables a legitimate overpay of the taxes payable for the state, though, not registering this fact with any economic operation.Reform of taxation for persons engaged in agricultural activities and real property trade, recently performed in Lithuania, conditions new scientific research in this area of tax system. Land site taxation, seems such a narrow profiled field of tax system, becomes more and more important tax within Lithuanian tax system. As the carried out statistical analysis of national budget administration data reveals, collection scope of taxes, where taxable object is real property, during the last decade is only increasing both in Lithuania and all EU countries. One of the most significant reasons determining such changes is micro economic condition of the country, however, state fiscal policy also plays quite a considerable role in this field.Lately, when budget becomes the basis for the stable state finance, debates, regarding both land site and other real property taxations are more frequent. Though, before initiating an exhaustive analysis of taxes, where a taxable object is the latter, it is important to emphasize that extremely wide range of application of taxation deductions exists in this field. Every municipality, in turn and on the budget account, may reduce the tax or even relief from the tax payable. As a performed empirical research shows, the latter taxation deductions, frequently applied in practice, do also increase demand for allocation while conditioning the lesser municipality budget income. Hereby, from the first sight, even pretty simple and insignificant taxes become more and more important, especially when national budget deficit and its control become the most important task both in the state and global financial market.Application of econometric models is being propagated for few decades now, however, in the field of the usage of taxing laws and regulations such models are not applied in worldwide practice. Adaptability of a graphic model is considered to be a real revolution in the field of tax system efficiency evaluation.A formed graphic model, in which taxable object is a land site, proves that even such a small taxable sector exhibits a lot of confusion, which can be exploited by the taxpayer to receive his fiscal benefit. Whereas the main purpose of laws, regulating the taxes, is calculation of the amounts payable and regulation of payment itself, construction of a graphic model allows us to evaluate not only budget and target funds fiscal income, but also influence of the latter on macro economic indicators of the country.

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