Lithuanian government may decide on car tax in fall - finance minister

The Lithuanian government may take decisions on a car tax in the fall in an effort to tackle the pressing problem of pollution and encourage motorists to choose less-polluting vehicles, Finance Minister Vilius Šapoka said on Thursday.

"I think we'll go back to this in the fall when the Environment Ministry proposes a model," Šapoka said on LRT Radio.

"My personal position is that a registration fee would make buying a polluting car less attractive and that incentives for buying less-polluting vehicles should be put in place at the same time," he added.

Lithuania's car fleet is old and polluting and if its structure does not change in the coming years, this will additionally cost taxpayers "several hundred million in financial resources", the minister said.

The International Monetary Fund has repeatedly called on Lithuania to introduce a blanket tax on cars. Previous governments raised similar ideas, but stopped short of starting serious discussions.

Source: BNS
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