The Ministry of Finance of the Republic of Lithuania has proposed increasing the cash payment limit to EUR 10,000. According to business organizations, such a decision under Lithuanian conditions would increase the risk of the shadow economy, weaken tax collection, and reduce economic transparency. The association Investors’ Forum, which brings together the largest and most active investors in the Lithuanian economy, together with the transparency ambassadors’ community White Wave, opposes this proposal and calls for maintaining the currently applicable EUR 5,000 limit.

“Lithuania is already facing significant challenges related to the shadow economy and ranks among the poorest performers in VAT collection within the European Union. Therefore, the proposal to increase the cash payment limit is neither economically justified nor responsible. On the contrary, it would weaken prevention measures and make it more difficult to ensure fair market rules”, says Vytautas Šilinskas, Executive Director of Investors’ Forum.

According to data from the OECD and national institutions, around 60% of payments in Lithuania are still made in cash, which is one of the highest figures in the euro area. International practice shows a clear trend: the higher the circulation of cash, the greater the risk of unreported transactions and tax evasion.

Although the European Union regulation sets a maximum cash payment limit of EUR 10,000, it also clearly allows Member States to apply stricter national restrictions based on their individual risk profiles. For example, the cash payment limit in France and Spain is EUR 1,000. In Poland, which has demonstrated particularly strong results in combating the shadow economy in recent years, the limit for business transactions is approximately EUR 3,200.

“Recently, the Seimas approved record-level defence funding, clearly demonstrating that the state takes its own security and that of its citizens seriously. However, we must be honest: these funds will be collected thanks to transparently operating businesses and taxpayers. Therefore, today state policy must focus on strengthening and improving tax collection, rather than on decisions that weaken control and increase the risk of unreported transactions,” says Rūta Skyrienė, Chair of the Council of White Wave and Strategic Advisor to Investors’ Forum.

Business organizations emphasize that Lithuania has a modern and widely accessible non-cash payment infrastructure, and that the law already provides for exceptions in cases where non-cash payments are objectively impossible. Therefore, the current limit does not create obstacles to business efficiency or to day-to-day economic activity.