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Klaipėda FEZ investors’ taxes paid exceeded EUR 100 million

28 Jun 2023

Last year, the total taxes paid by more than 40 investors operating in the Klaipėda Free Economic Zone (FEZ) amounted to EUR 107.3 million and reached an all-time record. Purchases of goods and services by FEZ companies in Lithuania also reached an all-time high of more than EUR 500 million.

Last year’s war, as well as the energy, raw materials and inflation crises, and the signs of recession that started to emerge in the second half of the year, distorted the main indicators of Klaipėda FEZ investors. Although the total turnover of companies amounting to EUR 1.76 billion and exports of EUR 780 million are also all-time records, they were significantly affected by the sharp increase in raw material prices related to the pricing of several major investors’ products. Leaving these companies aside, the rest of the Klaipėda FEZ business community has shown moderate growth throughout the past year, but many businesses have faced deteriorating consumer sentiment in the second half of the year.

However, other Klaipėda FEZ business community results continue to show a strong and growing contribution to the regional and national economy. Last year, purchases of goods and services by FEZ investors in Lithuania amounted to EUR 505 million, or 84% more than in 2021. Around one third of this figure is accounted for by the biodiesel producer UAB Mestilla, which buys rapeseed and other raw materials from Lithuanian farmers.

The amount of taxes paid by the Klaipėda FEZ business community also reached an all-time high last year – EUR 107.3 million in social, revenue and VAT taxes were 42% more than in 2021. In comparison, over the past year, the FEZ investors received EUR 8.2 million of state aid, which in the form of taxes alone has paid back several times over.

Last year, existing and new investors in Klaipėda FEZ implemented investment projects worth EUR 45.8 million. The largest investments were made in new REHAU and Finegri factories, while Retal Baltic Films, Neo Group, Orion Global PET, Pack Klaipėda, Lavango Engineering, Glassbel Baltic, Mestilla and other companies invested in the expansion of their existing capacities and infrastructure.

The number of jobs in Klaipėda FEZ investors’ companies increased from 2,300 to 2,800 last year, while the number of employees in the whole FEZ territory was around 5,000 last year.

According to Eimantas Kiudulas, the Klaipėda FEZ CEO, companies in the territory not only demonstrated resilience in a difficult period, but also increased their contribution to the national economy. 

“It is still difficult to talk about large new investments, and the beginning of this year is not easy for business, but we are actively preparing for the expected recovery. A business community that is stable throughout all economic cycles will be one of the factors that will allow us to gain momentum as markets recover,” comments Mr Kiudulas.

Since the inception of Klaipėda FEZ in 2002, Lithuanian and foreign capital companies have invested or plan to invest EUR 778 million in the territory. Since 2011, Klaipėda FEZ investors have paid a total of EUR 591 million in taxes, while the state aid received during this period amounted to EUR 61.3 million.

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