Alcohol, Energy, Financial Services, Legislation, Lithuania, Markets and Companies, Taxation

International Internet Magazine. Baltic States news & analytics Thursday, 28.03.2024, 21:27

Excise duty on cigarettes, alcohol, natural gas to be increased in Lithuania

BC, Vilnius, 03.10.2014.Print version
In 2015, due to commitments to the European Union, Lithuania will increase excise duties on cigarettes, alcohol and natural gas used for heating, informs LETA/ELTA.

Based on the EU requirements, since 2018 excise duty on cigarettes will have to be at least EUR 90 per 1,000 cigarettes, thus, the government is going to raise the excise duty gradually for four years in a row.

 

It is proposed to establish EUR 77.91 excise duty on cigarettes from March 2015, while specific element would be set at EUR 48.08 per 1,000 cigarettes. Therefore, the price of a 20 cigarette pack would grow buy approximately EUR 0.09. However, concrete price change will depend on pricing by producers and wholesalers.

 

In the 2015 state budget it is proposed to increase excise duty of beer, wine of fresh grapes and other fermented drinks, intermediate products and ethyl alcohol. In order to avoid steep tariff increase, this excise is also going to be increased gradually for three years.

 

The proposed excise rates for a hectolitre of finished product are as follows: for beer – EUR 3.11; for wine and other fermented drinks having an actual alcoholic strength by volume lower than 8.5% – EUR 28.38, and over 8.5% – EUR 67.19; for intermediate products of an actual alcoholic strength by volume lower than 15% – EUR 83.7, and over 15% – EUR 120.48; for ethyl alcohol – EUR 1,317.48.

 

Due to the increase of excise rate, the price of 0.5 litres of the aforementioned products could rise from EUR 0.015 (beer) to EUR 0.059 (ethyl alcohol).

 

Excise for natural gas used as a fuel for heating is also proposed to be increased in 2015. Excise rate of non-business purpose gas for heating is proposed to be set at EUR 10.05 for 1,000 cubic meters. Price of gas might grow by EUR 0.01 per 1 cubic metre.

 

Excise rate of natural gas for heating for business purposes is proposed at EUR 5.03 for 1,000 cubic metres. The price would grow by EUR 0.0005 per 1 cubic metre.

 

Exemptions of excise duty are proposed on natural gas that is supplied for household users and benefit recipients, used as fuel for regular bus transport, is exported or used for combined heat and power generation.

 

It is projected that the increase of excise duty would enable the state budget to collect around EUR 16.2 million in additional revenue in 2015.






Search site