Wishes of businesses and farmers come true: Seimas tends to reduce excise duties on gasoline, remove restrictions on preferential diesel

This would lead to lower costs

The bill proposes to reduce the excise on LPG by almost 7.5 times for domestic consumers intended for domestic heating, as well as for gas cylinders and businesses, from 304.1 euros to 41 euros per ton , which came into force at the beginning of this year.

According to the government’s proposal, the excise rate on LPG would be composed of a fixed part of 41 EUR/t and a variable CO2 component. It is proposed to start applying it to businesses from July next year, therefore the discussion of the project on this component is scheduled for the spring session of the Seimas.

The project’s explanatory note indicates that the impact on household consumption rates of the proposed excise rate, if ultimately approved, would change. The additional component of the tariff would be 10 to 11 ct/m3 instead of the current additional component of 72 to 80 ct/m3.

The impact on the price of a gas bottle would be felt. An additional 1.04 euros would be added to the price of a gas bottle instead of the current 7.67 euros.

It is also proposed to the Seimas to cancel the restrictions on preferential diesel – 60 EUR per 1,000 liters of excise-free fuel can again be used by agricultural enterprises and farmers.

It was announced that with the reduction of excise duties on LPG, if the law is approved, the country’s budget in 2024 will lose 10.7 million EUR, and in 2025 and 2026 – after – 14 million euros , even if, on the contrary, it had to be supplemented by around 17 million euros. EUR.

A reduction in excise duties and the use of preferential diesel are planned from March 1 this year. The bill is expected to return to plenary on Wednesday, February 14.

Šimonytė: the projects did not appear because someone was afraid of something

Presenting the changes during the Seimas session on Monday morning, Prime Minister Ingrida Šimonytė said that these changes in the laws are not made because someone is afraid of something.

“I would like to emphasize that the bills did not appear because someone was afraid of something or showed Vilnius a beautiful tractor. I had a meeting with colleagues from the Council of Agriculture on the 8th January during which these issues were discussed, mainly the use of green diesel. <...> it was agreed that we would offer a refund before January 1st. old formulation, what is done.

Another issue more relevant to domestic manufacturers and consumers is the taxation of petroleum gas used as fuel for heating or other purposes. Given that after adopting the amendments to the Excise Law and equating this rate to the excise tax applied to fuel, the increase in excise duties was significant, the government therefore proposes to set this rate at 41 EUR/t excise tax,” said I. Simonytė.

She added that the government will certainly not propose to establish a zero tariff, because this does not meet the emissions reduction objectives of the green tariff, especially since he indicated that this tariff in other countries is also lies between 13 and 60 EUR/t.

“41 EUR/t is a logical median,” she said.

It has also been argued that although there are frequent calls for companies to be compensated from January 1. increase in excise duties, the Government proposes to do so when the CO2 component subsequently comes into force.

“The decision we made in June, in my opinion, was not the most proportionate decision. The CO2 part will come into force in 2025. and will increase the burden of adaptation. This is the main task of the course green, but the move from zero customs duties to 300 per tonne is probably not the most rational thing that could have been done,” admitted I. Šimonytė.

He accused the minister of concealing

Seimas member Viktoras Fyodorov said it is disappointing that the LPG excise law is only being amended now, but, as he emphasized, he is more concerned about the changes to the diesel project Green. According to him, it is not clear who owns this initiative.

I. Šimonytė said that it was necessary to destroy the tension created in this place.

“It’s not a big secret that it is not always used, where it should be used there are violations that can be determined, but a more logical way to solve this problem is to provide rates adequate fuel requirements that are needed in different agricultural activities. than requiring the use of fuel only in agricultural machinery specific to certain species.

The use of such fuel in light vehicles raises my eyebrows, I accept the arguments when they say that you need to go to the cows and leave in a jeep, but still, thinking about food chains, shortening them , this shrinkage was not acceptable. This tension must be destroyed,” she said.

Agnė Širinskienė did not hesitate to criticize I. Šimonyte and the Minister of the Environment Simon Gentvilis.

“The minister made mistakes, and very big mistakes. He did not listen to any warning, we no longer see him in the stands now. Once again, you are hiding all the mistakes of the ministers and trying to protect all the losers. I suggest Minister Gentvilis to go and answer questions without interfering with the head of government,” said A. Širinskienė.

“I am not hiding anything from the platform, because this decision came after my meetings and my commitments to the agricultural council.

As for mistakes, I know you are a person of deep faith, so if you do not make any mistakes, throw the stone,” the Prime Minister said.

Simon Gentvil

Kęstutis Mažeika and Remigijus Žemaitaitis also criticized the minister.

“Come and just say that you made a mistake,” said R. Žemaaititis.

Nausėda would further reduce excise duties

The country’s president, Gitanas Nausėda, also spoke about the need to reduce excise duties on LPG.

Earlier still, he said fuel excise duties should be even lower than those proposed by the government – 41 euros per tonne, until the amount farmers had to pay was compensated.

The Ministry of the Environment has proposed reducing the excise on LPG to 70.58 euros per tonne.

The editorial staff recalls that several thousand farmers demonstrated in Vilnius from January 23 to 26 and that approximately 1.3 units of agricultural and forestry equipment arrived in the capital.

The demonstrators, in addition to the cancellation of the obligation to restore perennial meadows, also demanded a halt to the development of protected areas, a ban on the import of Russian grain into Lithuania, a return to the old procedure of the use of marked diesel and the reduction of extremely high excise duties on liquefied products. petroleum gas appeared this year, ELTA announced.

Source: The Delfi





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