The Lithuanian Free Market Institute has examined draft amendments to Article 37 of the Law on Excise Duties no. IX-569 and submitted its comments and proposals to relevant authorities.
Among other changes, the draft law proposes an increase in the excise duty applied to diesel fuel from 330.17 eur per ton to 347 eur per ton. According to LFMI’s calculations, due to the proposed amendments diesel prices would increase by approximately 0.02 euro per liter. In its position paper the Lithuanian Free Market Institute calls for the rejection of the draft law and puts forward the following arguments: a) the affordability of fuel subject to excise duty in Lithuania is already among the lowest in the EU; b) an increase in excise duty would result in additional costs for business, ultimately leading to higher consumer prices; c) higher prices will create incentives to engage in the shadow economy.
The full position paper (in Lithuanian) and further argumentation is available here.
