The taxation of the residents' property Lithuania used for commercial purposes will spur on the growth of shadow economy, the opposition Liberal and Centre Union said.

"The administration costs of the real estate tax are big, with limited chances of collecting revenues; given this tax is imposed, there will therefore be less transparency in real estate business”, the Liberal Centrists said in a Friday statement.

The opposition party suggests introducing no new taxes during the envisioned taxation reform, but fight shadow economy with economic measures.

Te tax revenues allocated to municipal budgets must be approved only after considering the development outlooks for regions, according to the Liberal Centrists.

"There must be such tariffs of taxes that encourage fair and transparent business”, the statement reads.

It is estimated that the Lithuanian state budget re-allocates 29-35 percent of the gross domestic product.

On Thursday, the Political Council of the four ruling parties arrived at consensus to complete the following steps in the taxation reform: to reduce the personal income tax, replace the road tax with the so-called (interim) solidarity tax, and tax the commercial real estate of individuals.