excise duty

The Lithuanian Cabinet decided on Wednesday to raise the excise duties on strong alcohol, diesel fuel and heated tobacco in March 2020.

The Lithuanian government's proposal to raise the excise duty on tobacco products next year is a result of the efforts to improve public health rather than generate more budget revenue, says Finance Minister Vilius Šapoka.

The excise tax rate for strong alcoholic beverages will rise by 23 percent next March and that for wine and beer will surge by up to 112 percent, which will drive drinks prices up by up to 1 euro per bottle.

The parliament of Lithuania has adopted amendments to the Law on Excise Duty. The bill introduces higher excise duty rates on beer, wine and other fermented beverages, intermediate products, ethyl alcohol, cigarettes, cigars and cigarillos starting in March 2015.

Lithuanian Prime Minister Algirdas Butkevičius claims that the government is not planning to make any major changes to the tax system next year or introduce any new tax exemptions. He adds that a rise in the excise duty on alcoholic drinks is considered.