The following goods are subject to excise duties:

• Ethyl alcohol and alcoholic beverages;
• Manufactured tobacco;
• Energy products;
• Electricity;
• Coal, coke and lignite.

Electricity will be subject to excise duty from 1 January 2010 on completion of a transitional period.

Excise Duty Rates

The following excise duty rates are in effect in Lithuania at present:  

Lithuania has received a transitional period for achieving the minimum excise duty rates for cigarettes, petrol, gas oil and orimulsion:

• cigarettes — by 1 January 2010;
• lead-free petrol — by 1 January 2011 (the minimum excise duty rate - 359 EUR per 1000 litres of the product);
• gas oil and kerosene — by 1 January 2013 (the minimum excise duty rate - 330 EUR per 1000 litres of the product, but no less than 302 EUR per 1000 litres as from 1 January 2011.
  • Furthermore, Lithuania has been granted the right to tax orimulsion at the rate of LTL 0 per ton of product by 1 January 2010.

Excise Duty Payers. Authorised warehouse keepers, registered or non-registered traders, importers and, in cases established by the law — other persons must calculate and pay excise duties to the state budget.

Regulation in the European Union. There exists stringent regulation of VAT taxation in the European Union with regard to the fact that VAT as consumption tax has substantial impact on the development of the internal market without borders.

Council  Directive of 25 February 1992 No. 92/12/EEC on the general arrangements for products subject to excise duty and on the holding, movement and control of such products is the main document establishing the excise taxation system (i. e. the system of tax warehouses, regime of temporary deferral of payment of excise duties, tax payers duties etc.).

Other directives pertain to individual groups of products subject to excise duty and establish the structure of taxation and the minimum excise duty rates:

1. ethyl alcohol and alcoholic beverages — Council Directive of 19 October 1992 No. 92/83/EEC on the harmonization of the structures of excise duties on alcohol and alcoholic beverages and Council Directive of 19 October 1992 No. 92/84/EEC on the approximation of the rates of excise duty on alcoholic beverages;
2. manufactured tobacco — Council Directive of 19 October 1992 No. 92/79/EEC on the approximation of taxes on cigarettes,  Council Directive of 19 October 1992 No 92/80/EEC on the approximation of taxes on manufactured tobacco other than cigarettes, and Council Directive of 27 November 1995 No. 95/59/EC on taxes other than turnover taxes which affect the consumption of manufactured tobacco;
3. energy products and electricity — Council Directive of 27 October 2003 No. 2003/96/EC restructuring the community framework for the taxation of energy products and electricity.

Regulation in Lithuania. Republic of Lithuania Law on Excise Duties No.  I-429 was adopted on 12 April 1994 and was in effect from 22 April 1994 till 30 June 2002.

On 1 July 2002, a new version of the Republic of Lithuania Law on Excise Duties No. IX-569 came into effect; it has implemented all the key provisions of EU legal acts governing excise duties. However, those requirements — the application of which was subject to Lithuania‘s joining the EU and the common market — as well as certain provisions concerning harmonisation of excise duties were not transposed to the law.

On 29 January 2004, the Republic of Lithuania Law Amending the Law on Excise Duties No. IX-1987 was adopted and came into effect on 1 May 2004.  This law represents the final transposition of provisions of the EU legal acts governing excise duties into Lithuanian law with the exception of provisions for the transposition of which Lithuania has been granted a transitional period.

Clarification of Provisions of the Law on VAT. Taxpayers wishing to obtain consulting on payment of excise duties or information about the application of the Law on Excise Duties  and relevant bylaws should approach the State Tax Inspectorate as provided for in the Law on Tax Administration. 

Information from the website www.finmin.lt of The Ministry of Finance of the Republic of Lithuania.