Ecology, Lithuania, Taxation, Transport
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Friday, 29.03.2024, 11:33
Lithuania's planned car pollution tax to bring up to EUR 100 mln in extra revenue a year
"(Initially), 10 mln-15 mln 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 mln," he
told.
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 mln 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 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.