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The Lithuanian Cabinet decided on Wednesday to raise the excise duties on strong alcohol, diesel fuel and heated tobacco in March 2020.
Alcohol, tobacco and diesel fuel excise tax hikes approved
© DELFI / Karolina Pansevič

Finance Minister Vilius Sapoka says the excise duty hikes aim to expand the base of taxes less detrimental to economic growth, and to promote a healthy lifestyle.

"The price per 20-unit pack of heated tobacco products could increase by around 33 (euro) cents," Sapoka said at the Cabinet meeting.

The tobacco excise tax hike is expected to generate around 6 million euros in additional budget revenue annually, he said.

The excise tax rates are set to increase by 68 percent for heated tobacco (from the current 58.6 euros to 113.2 euros per kilogram), by 10.5 percent for ethyl alcohol, by 7.3 percent for gasoline, by 7.2 percent for diesel fuel, and by 44.6 percent for diesel fuel used for agricultural purposes.

The excise duty hikes are expected to bring in a total of 53.5 million euros in additional budget revenue, including 34 million euros from the tax on diesel fuel, 6.5 million euros from diesel fuel used by farmers, and 10 million euros from ethyl alcohol.

The ministry estimates that hikes will lead to average price increases of around 0.45 euros per 0.5 liters of strong alcoholic drinks, 0.04 euros per liter of gasoline, and 0.03 euros per liter of both diesel fuel for general use and that for agricultural purposes.

BNS
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