The Lithuanian government is considering lowering excise duty on fuel in a bid to bring down soaring gasoline and diesel prices, Deputy Finance Minister Gediminas Norkunas said on March 14.
“I cannot discuss anything until measures have been approved by the cabinet, but yes, we are looking at possible measures,” Norkunas told the parliamentary Committee on Budget and Finance.
“If the excise duty was reduced to the minimum level, the price of gasoline would probably decrease by 13 eurocents per liter, and that of diesel fuel would go down by 5 cents,” he said.
The European Commission does not currently allow a value-added tax reduction on fuel, but it is already considering the issue, according to Norkunas.
“Until the European Commission makes its decision, an independent decision by a member state to cut VAT in violation of the directive could lead to sanctions,” he added.
Budget revenue losses from possible excise duty cuts are estimated at around 127 million euros, according to Norkunas.
The proposed minimum excise duty rates would be set at 359 euros per 1,000 liters of gasoline and 330 euros for diesel, instead of the current 466 euros and 372 euros, respectively.
The government has previously approved a plan to increase the excise duty on diesel to 410 euros per 1,000 liters in 2023, 466 euros in 2024 and 500 euros in 2025. (LRT/Business World Magazine)
