Every new construction will be designed with the thought of lightening the tax burden as much as possible. The architectural scenery of Lithuania will be affected not by people s needs but by the real estate tax. The real estate tax will widen, rather than even out, the differences in taxation regimes for corporations and individuals. One frequently cited argument for the real estate tax is that it will help even out tax conditions for corporations and individuals. But these conditions cannot be uniform given that corporations use assets for business activity, whereas individuals for residence.
Enterprises pay the real estate tax before corporate tax, while individuals pay taxes on all income.
This means that they pay the real estate tax from income that has already been taxed once. Therefore, the tax regimes should be evened out by abolishing the real estate tax for corporations rather than imposing the tax on individuals. The introduction of the real estate tax will result in double income taxation. Given that all personal income is taxed without any deductions, the real estate tax will be paid from income already taxed once. Double taxation is one of the biggest defects of the tax system, making it irrational and non-transparent.