A car pollution tax that the Lithuanian government plans to introduce in 2020 would bring an estimated 10 million to 15 million euros in extra budget revenue in the first year, Environment Minister Kestutis Mazeika says, adding that this amount could later increase up to 100 million euros.
© Mindaugas Milinis

"(Initially), 10 million-15 million euros ... It would later increase with the increase in the number of cars (subject to the tax). The largest amount starts in 5 years' time; it may reach up to 100 million," he told BNS.

According to Mazeika, it is proposed tentatively that the annual tax should start at 20 euros per vehicle emitting over 130g/km, but no final decision has yet been made. For more polluting cars, the tax would rise at a rate that is yet to be decided.

"It is not yet defined, but we are modeling and looking to make sure (the tax) is as effective as possible and motivates people," he said.

The extra revenue generated by the new tax would be used to provide financial incentives for motorists to purchase less polluting cars, the minister said.

A national air pollution reduction plan endorsed by the government in April calls for providing a financial incentive of 1,000 euros per person for scrapping an old vehicle and buying a less polluting one, with a total of 30 million euros to be allocated for this scheme until 2021.

"We could also offer VAT reimbursements or set up electric car charging stations (...). There are various measures," Mazeika said.

He told BNS that a pollution tax bill would be tabled to the parliament along with next year's draft budget.

International organizations have recommended for years that Lithuania introduce a tax on polluting vehicles.

BNS
It is prohibited to copy and republish the text of this publication without a written permission from UAB „BNS“.

Two more companies get licence from Bank of Lithuania

The Board of the Bank of Lithuania has issued two new licences: an electronic money institution...

Richest politicians: not in parliament but in municipal councils

Liudas Skierus , a member of the municipal council in the northwestern town of Plunge, and Kaunas...

Medicinos Bankas may be sold to strategic or financial investor

Konstantinas Karosas , the majority shareholder of Lithuania's Medicinos Bankas , and a team of...

Lithuanian-owned property administration and maintenance company gears up to export its e-Housing app abroad

Lithuanian-owned property administration and maintenance group City Service is combining its digital...

Creative camp on defence technology moves to the Lithuanian Naval Force

The second in Lithuania defence and technologies creative camp ( hackathon ) DELTA NAVY will take...