Investors’ Forum News

It is estimated that the state loses more than one billion euros each year due to uncollected VAT alone. A new survey of Lithuanian residents shows that people have a fairly clear understanding of the cost of tax evasion to the state and society: 46% of respondents believe it reduces funding for public services, 43% say it encourages unfair competition, and 41% think it increases price differences between honest and dishonest businesses. Yet in everyday situations, the shadow economy remains close to consumers — from “envelope wages” to unrecorded payments in the services sector. The gap between awareness and everyday habits is being highlighted during the transparency campaign “No Country for Shadow” held in Lithuania.

The business association Investors’ Forum, which brings together business leaders in Lithuania, has announced who contributed the most last year to making Lithuania a safe and prosperous country. At the awards ceremony held for the fifteenth time, the title of Investor of the Year 2025 was awarded to Hollister Lietuva, while the Best Decision for the Investment Environment was recognized as increasing the defense budget to 5.38% of GDP.

An overwhelming majority (71%) of Lithuanian residents consider it important for the state’s bureaucratic apparatus to operate efficiently; however, nearly two-thirds (61%) feel this efficiency is lacking. A survey commissioned by the Investors’ Forum, an association representing the largest and most active investors in Lithuania’s economy, reveals that as many as three out of four residents encounter excessive bureaucracy at least occasionally. A similar share believe that a more efficient public sector could save at least one-tenth of government expenditure.

The decision by automotive industry supplier Aumovio (formerly Continental) to withdraw from Lithuania is a serious signal warning of the country’s declining competitiveness and challenges in the investment environment. This is how the association Investors’ Forum, which unites the largest and most active investors in Lithuania’s economy, evaluates the publicly reported information about the company’s plans. According to the association, if the state does not take consistent steps to improve the investment climate, the risk increases that other companies may make similar decisions.