Final vote in the Seimas on the temporary reduction of excise duty on diesel

The Parliament will decide on Tuesday whether to temporarily cut excise duty on diesel until 15 June in order to make it around six cents cheaper to buy the common and agricultural fuel.   

The Ministry of Finance, which drafted the amendments to the excise duty law, has said that Minister Kristupas Vaitiekūnas is initiating the excise duty cut only for diesel because the conflict in the Middle East has made it the most expensive fuel.  

As the Minister stated when presenting the amendments, the excise duty reduction is intended to show solidarity by the State, which is foregoing additional Value Added Tax (VAT) revenues in order to make the fuel price shock easier and have a less negative impact on the economy.  

As BNS wrote, Deputy Finance Minister Lukas Jakubonis estimates that about €13 million in additional VAT revenue could be collected in two months, which will be used to reduce the price of diesel.

If prices continue to rise, he said, an extension of the reduced excise duty will be considered.