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Ideas related to car tax, increase in excise duty for alcohol pushed forward in Lithuania

BC, Vilnius, 12.02.2014.Print version
The increase in the car tax and the excise duty for alcohol (proving the privileges for the small companies producing beer) are pushed forward. Such income sources are being considered by the Pension Compensation Working Group. The conclusions which will be presented to the Political Council should be prepared on Wednesday, informs LETA/ELTA.

While giving an interview on radio Ziniu Radijas on Wednesday morning, Lithuania's Minister of Finance Rimantas Sadzius mentioned 2 sources of income related to the increase in taxes. Sadzius refused to reveal the size of the increase in car tax but said that this was to be "small money".

 

According to the finance minister, the parameters by which the car tax was to be calculates were still under the discussion.

 

"In my opinion, the best and perhaps the most objective is the proportional tax. Some people are talking about the age of the vehicle, some – about the value. I think that the discussion will continue," said Sadzius.

 

The minister highlighted that the income from this tax would be enough to cover the additional expenditures related to the pension compensations.

 

The further discussion related to the increase in the excise duty for alcohol was also taking place.

 

"The issue related to the excide duty is on the table. Regrettably, it is not the sustainable and sufficient source due to the simple reason – the greater increase in the excise duty for alcohol will lead to the shadow economy and illegal production of alcohol," said Sadzius.

 

While talking about the excide duty increase, the minister paid the attention to the cider prices.

 

"It seems to me that there a political agreement to consider the cider prices (). The cider prices should be raised," said Sadzius.

 

Sadzius had the similar opinion about beer. However, the minister said that the certain privileges could be applied for the small companies producing beer.

 

"Beer – as well. However, we should not forget our traditions related to the beer production," said Sadzius.

 

It is expected that the recovering economy will also bring the additional money. The minister said that it was important to ensure that the EU funs were to be invested efficiently.

 

The Minister of Finance will present the calculations of the potential sources of funding for the compensation in the Political Council.

 

Earlier, Lithuanian Social Security and Labour Minister Algimanta Pabedinskiene said that the pensioners were to be compensated for pension cuts during the crisis within the next three years.

 

On February 5, the Lithuania's Pension Compensation Working Group decided that the beneficiaries would not be able to take back the compensations of the reduced pensions, if a pensioner faded away.






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