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Big engines, big tax bill

  • 2014-02-13
  • From wire reports, VILNIUS

Tax on cars in Lithuania will soon be decided based on engine capacity if a new proposal goes through parliament, reports ELTA. It was agreed that this basis offers the most simplicity and clarity of criterion.

"We have analyzed the variant of carbon dioxide, and price, and the age of a car, and we have decided that at present it was most rational to choose one specific parameter and to compile a simple table (..), that this variant would be best understood and most easily administered. Therefore, we think that at present it is the most rational proposal," said the minister of finance, Rimantas Sadzius, after the Cabinet sitting on Wednesday.

Sadzius admitted that the proposal by the working group may be transformed during its adoption in the Seimas.

It is planned that the car tax will bring 200 million litas (57 million euros) to the state budget every year. It should be paid based on a declaration sent to the State Tax Inspectorate (VMI) by the owner of a car.

It is planned to calculate the fee according to engine capacity. Owners of motorcycles with an engine capacity of 0.5 liters would pay 70 litas per year; 0.501-1 liter would pay 130 litas; 1.001-1.5 liters pay 190 litas, and 1.5 and over would pay 250 litas.

Owners of cars with an engine capacity of 1.5 liters would pay 90 litas; 1.501-2 liters would pay 170 litas; 2.001-2.5 liters would owe 240 litas; 2.501-3 liters at 310 litas; 3.001-3.5 liters at 380 litas; 3.501-4 liters pay 450 litas;, 4,001-5 liters would pay 520 litas and 5 and over pay 590 litas.