In the Seimas committees, opinions on LPG excise duties differ: some are in favor of the government’s proposal, while others want to reduce it further.

BFK’s conclusion was approved by 6 votes, 4 BFK members abstained.

Parliamentarians Andrius Palionis, Laima Nagienė, a group of social democrats and “workers” proposed applying a lower excise rate to LPG, but the committee did not approve any of the proposals.

In addition, the Minister of the Environment, Simonas Gentvilas, as well as the “liberals” Kaspars Adomaičius and Morgana Daniele, proposed a higher price, 70.58 euros, but S. Gentvilas was the only one to accept it.

On Monday, the draft law on excise duties was submitted to the Seimas, according to which the constant rate of excise duties on LPG is reduced by almost 7.5 times. The project is expected to return to the plenary session on Wednesday, February 14, at the examination stage.

The presidency called for a reduction in the rate

Vaidas Augustinavičius, the president’s advisor who participated in the committee meeting, said that to compensate for the excessively high excise duties applied at the beginning of the year, it is not enough to postpone the CO2 component and the LPG tariff “should be similar to Poland.

“If we were to transfer the value of the compensation offered by the government next year to this year, we would see that the average rate for the 12 months of this year would be around 70 euros per tonne. This is much more than the reference value proposed by the government, which is 41 euros, and this is 5 times or more than in neighboring countries. In order to properly compensate for losses due to excessive excise duties, from March 1 a far lower tariff of 41 euros should come into force, i.e. similar to that of Poland”, said V. Augustinavičius.

“Otherwise, if it does not exist, we can only talk about fictitious compensation, especially since compensation is promised next year and businesses and residents are suffering losses due to the tariff this year.” (…) Since this is an Extraordinary Session, the President requests that the right decision be taken immediately. A real correction of the error would be a prime rate fixed this year, from March to December, and then, as the government proposes, a standard rate,” he noted.

Elana Astramovič, representative of the Confederation of Lithuanian Industrialists (LPK), proposed two alternatives: either apply a basic excise tax of 14 euros per ton, or 41 euros, but postpone the CO2 component to 2026. start

“Two alternatives can be considered. There is still a proposal to apply a basic excise of around 14 euros per tonne and it would be valid with the CO2 component, or an alternative proposal of 41 euros of basic excise and the component CO2 could be delayed by at least six months, but until 2026. start,” said E. Astramovič.

However, the President of the Lithuanian Confederation of Renewable Energy, Martynas Nagevičius, stressed that every euro unpaid in excise duties will be paid by other taxes.

“Each euro of unpaid excise is an additional euro collected in other taxes, because otherwise you will not collect. Compensation of polluters is carried out in relation to other taxpayers. This is called fossil fuel subsidies , which we, as Lithuania, are obliged to refuse. This reduction in excise duties goes in the opposite direction to what we received from the EC’s recommendations,” explained Mr. Nagevičius.
He was also supported by S. Gentvilas, who said the tariff reduction was a “bad signal”.

“If we start with 0, 13 or even 41 euros per tonne, it will be a bad signal that it is worth investing in,” he said.

On Monday, the draft law on excise duties was submitted to the Seimas, according to which the constant rate of excise duties on LPG is reduced by almost 7.5 times. The project is expected to return to the plenary session on Wednesday, February 14, at the examination stage.

Another committee approved the proposal to reduce the tariff to 13.94 EUR/t

At the meeting held on Monday morning, the Seimas Rural Affairs Committee (KRK) approved the proposal initiated by MP Laima Nagienė to reduce excise taxes on LPG even more than the government’s proposal – to 13.94 euros per tonne.

During the plenary session, L. Nagienė spoke out against the scale of the excise rate proposed by the government, emphasizing its proposal to apply an even lower excise tax.

Nevertheless, KRK President Viktoras Pranckietis supported the government’s proposal and thanked for “a faster reaction than promised during the farmers’ protest.”

It is proposed to apply the tariff of 41 EUR/t to heating and LPG put into gas bottles, as well as when this gas is used as heating fuel for professional purposes.

According to the government’s proposal, the excise rate on LPG will include a fixed part of 41 EUR/t and a variable carbon dioxide (CO2) component. It is proposed to start applying it to businesses from July next year.

The Ministry of the Environment, for its part, proposed a rate of 70.58 euros/t. According to the ministry, the LPG tariff should be competitive with the red excise tax on diesel (72.07 EUR/t), since both types of fuel are used both in agriculture and for heating.

Changes from 2025 that provide for the CO2 component are proposed for consideration by Parliament in the usual way.
ELTA recalls this from January 1 of this year. an excise duty of 304.1 EUR/t of LPG came into force.

The new tariff adopted by the Seimas at the initiative of the Ministry of the Environment has caused great discontent. Farmers who demonstrated in Vilnius from January 23 to 26 demanded, among other things, a reduction in excise duties on LPG, and the “Jozita” gas station chain began writing criticism of the authorities on their received.

Furthermore, in early January, Lithuanian business and industrial confederations called on the government to “responsibly assess the negative impact of the new regulations” on competitiveness, following the introduction of an excise tax on LPG much higher than in the region. Some companies switched to LPG after 2022. Russia’s large-scale invasion of Ukraine in order to reduce consumption of then extremely expensive natural gas.

Latvia does not apply excise duty on LPG, in Poland it is 13 EUR/t, in Germany – 45 EUR/t, in Estonia – 55 EUR/t. In response to criticism, the Government Chancellery registered the draft excise law, in which excise duties on LPG for residents and businesses are reduced to 41 euros/t.

It is expected that the Seimas will approve this excise tax amount during the extraordinary parliamentary session convened on February 12-15. Commercial structures had previously requested an excise tax of 13.94 EUR/t of LPG, and the President of the Lithuanian Agricultural Council, Ignas Hofmanas, said that the rate could reach around 20 EUR/t.

LPG is also used for heating and in households in regions of the country where natural gas infrastructure is not developed, for example in Skuoda and Mazeikiai. The ministry proposes to gradually move to the excise tax of 304 EUR/t, until 2030.

Source: The Delfi

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