Retail prices for spirits, fuel set to rise in Lithuania after MEPs approve excise hikes

  • 2019-12-03
  • BNS/TBT Staff

VILNIUS - Retail prices for strong alcoholic beverages, gasoline and diesel fuel are set to rise in Lithuania next year after the parliament approved on Tuesday an increase in excise duties on these items. 

However, the Seimas left in place a reduced excise tax rate for diesel fuel used for heating and increased the rate for diesel fuel used for agricultural purposes by a mere 7 percent. 

The amendments to the Law on Excise Duties were approved in a vote of 73 to none with six abstentions.  

The excise tax rate for diesel fuel used in agriculture will rise by 4 euros, or 7.2 percent, to 60 euros per 1,000 liters in January, a far cry from President Gitanas Nauseda's move to increase the rate by 90 euros to 146 euros, and the government's proposal to raise it by 25 euros, or 44.6 percent, to 81 euros. 

The excise tax on highly-polluting diesel fuel used for heating remains unchanged at 21.14 euros per 1,000 liters, even though the government asked the parliament to increase it to the standard 372 euros. 

The standard excise duty rate on unleaded petrol will increase by 7.3 percent, from 434.43 to 466 euros per 1,000 liters, which will drive the average gasoline price at the pump by an estimated 4 euro cents.  

The tax rate on gas oil will go up by 7.2 percent, from 347 to 372 euros per 1,000 liters.

The excise tax rate on ethyl alcohol is set to rise by 10.5 percent, from 1,832 to 2,025 euros per hectoliter, next March, leading to an average price increase of around 0.45 euros per 0.5 liters of strong alcoholic drinks.

The excise tax hikes are expected to generate around 40 million euros in additional budget revenue next year. 

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