Factsheet: Law on Excise Tax

Law on Excise Tax

Key Information
Full name of Instrument & Measure (English): 
Law on Excise Tax
Full name of Instrument & Measure (native language): 
Lietuvos Respublikos Akcizų įstatymas (Valstybės žinios, 2001, Nr. 98-3482; 2010, Nr. 45-2174; 2013, Nr. 76-3846)
Description: 
Electricity from renewable sources is exempt from excise tax (Chapter IV Art. 48 Par. 1 Item 2 Law on Excise Taxes). The tax on generated electricity is LTL 3.5 per MWh (approx. EUR 1 per MWh). Generated electricity used for business purposes is subject to a tax of LTL 1.8 per MWh (approx. EUR 0.52 per MWh) (Chapter IV Art. 47 Par. 1, 2 Law on Excise Taxes). The relief is also applicable to bioethanol, biodiesel, bio-ETBE and vegetable oil (Chapter III Art. 40 Par. 1 Item 4 Law on Excise Taxes). The excise tax rate is reduced in proportion to the percentage of biomass per tonne of biofuel.
Goal/Aim: 
Stimulate electricity from renewable sources and biofuels.

Sector/Topic targeted:

Responsible Authority: 
Valstybinė mokesčių inspekcija prie Lietuvos Respublikos finansų ministerijos – State Tax Inspectorate of the Ministry of Finance of the Republic of Lithuania

Status:

Year Instrument & Measure Started: 
2002
Year Last Instrument & Measure was last Amended: 
2013