Assessment and reduction of regulatory burden on business

2011

With Resolution No. 213 of 23 February 2011, the Government of the Republic of Lithuania approved the Methodology for Determining and Assessing Administrative Burden on Citizens and Other Persons. This methodology allows the administrative burden placed on citizens to be assessed.

2012

With the Government of the Republic of Lithuania approving the Methodology for Determining Administrative Burden on Business by Resolution No. 4 of 11 January 2012, a new mechanism for preventing additional administrative burden was created. This resolution established that the administrative burden placed on business by all draft legislation that creates new informational obligations or alters existing ones must be assessed, and such draft legislation, along with its Administrative Burden on Business Evaluation Report, must be reviewed by the Ministry of the Economy and Innovation.

2013

Adopted on 8 November 2012 and in force since 1 July 2013, the Republic of Lithuania Law on the Reduction of Administrative Burden sets out measures for reducing administrative burden, ways to apply them, and administrative burden reduction principles; provides for biannual administrative burden reduction plans; establishes the Commission for the Supervision of Better Regulation; and obligates both state and municipal institutions to assess administrative burden.

2014

On 22 July 2014, the Methodology for Determining Administrative Burden on Business was updated by government resolution, setting a new administrative burden reduction goal that is applied to every institution individually: the annual level of administrative burden placed on business that is created by regulatory initiatives in each institution’s area of competency must be reduced or remain the same (the One-In One-Out Rule). The same update obligated the Ministry of the Economy and Innovation to calculate the total change in administrative burden placed on business by regulation within each institution’s remit based on data the institutions provide in their Administrative Burden on Business Evaluation Reports. Under this government resolution, municipalities and institutions not under the government are recommended to assess the administrative burden placed on business.

2021

Under the Plan for the Implementation of the Provisions of the Eighteenth Government's Program, approved by Government Resolution No. 155 of 10 March 2021, a government resolution approving a regulatory compliance cost assessment methodology is to be prepared and adopted.

2022

On 6 April 2022, the Methodology for Assessing the Administrative Burden and Compliance Costs for Business was approved by government resolution. From the adoption of the Government Resolution until the end of 2022, it was recommended to assess the expected change in not only administrative burden for business but also compliance costs (real financial expenses) resulting from new or modified obligations to be placed on business. From 1 January 2023, such assessment became mandatory for ministries and other state institutions accountable to the Government of the Republic of Lithuania.  

It is important to note that prior to 2023, institutions had been required to assess only administrative burden (everything related to the flow of information, such as submission of activity reports, declarations or other information to government institutions; publication of mandatory information on business’ websites; etc.). Since 2023, institutions have been required to assess administrative burden and compliance costs – i.e., all real financial costs, such as adapting premises to comply with legal regulations, staff training, acquisition of materials, etc. That means that in addition to administrative burden, including employee expenses, costs for external services, and additional costs, costs for materials and investmentsmust also be evaluated. Collectively these costs are referred to as regulatory burden.