Lithuania government to decide on diesel tax cut next week, minister says

VILNIUS - Lithuania expects a European Commission ruling soon on its plan to cut diesel excise duties, with the government set to decide next week, Finance Minister Kristupas Vaitiekunas said on Thursday.

The Finance Ministry has registered amendments to the Law on Excise Duties, proposing a lower rate to remain in effect until June 15.

Vaitiekunas said parliament will be asked to consider the amendments under an expedited procedure.

The proposed changes target the fixed components of excise duties for both standard and agricultural diesel, which would reduce the final rates to 503.6 euros and 35 euros per 1,000 litres, respectively.

According to the minister, the European Commission's position is expected within the coming days.

Coordination with Brussels is required as Lithuania previously received 195 million euros from the Recovery and Resilience Facility in exchange for increasing excise duties, updating real estate taxes and introducing green fuel levies.

The Finance Ministry later clarified that the Commission has indicated Lithuania has flexibility regarding excise changes, though a final assessment will follow the submission of the final draft legislation.

Estimates suggest the reduction could lower the price of diesel by approximately 6 cents per litre.