Tax regulation mechanism (Law on Environmental Pollution Taxes)

Updated: 13.02.2017

Author: Jurga Tallat-Kelpšaitė

Natural and legal persons using biofuels, including biohydrogen, in vehicles are exempt from environmental pollution tax on their mobile source emissions. The decision to grant exemption from environmental pollution tax is based on documentary evidence. Moreover, in order to be eligible for environmental pollution tax relief, biofuels must meet certain statutory standards. The amount of subsidy is equal to the amount of tax a natural or legal person is exempt from (Art. 5 Par. 3 Item 4 Law on Environmental Pollution Taxes). 

Eligible technologies

This measure applies to liquid and gas fuels produced from biomass (Art. 5 Par. 3 Item 4 Law on Environmental Pollution Taxes; Chapter I Art. 2 Par. 8 Law on Energy from Renewable Sources). 

Biofuels

• Eligible (Art. 5 Par. 3 Item 4 Law on Environmental Pollution Taxes; Chapter I Art. 2 Par. 8 Law on Energy from Renewable Sources). 

Amount

The amount of subsidy is equal to the amount of tax a natural or legal person is exempt from (Art. 5 Par. 3 Item 4 Law on Environmental Pollution Taxes).

Addressees

Natural and legal persons using biofuels in vehicles (Art. 5 Par. 3 Item 4 Law on Environmental Pollution Taxes).

Procedure

Process flow

The decision to grant exemption from pollution tax is based on documentary evidence on the presence and operation of an exhaust gas neutralisation system in the vehicle (Art. 5 Par. 3 Item 4 Law on Environmental Pollution Taxes). Such documentary evidence covers among other things:

  • certificate issued by the manufacturer of the vehicle, his representative agent/official distributor in Lithuania, containing specific information as described in the First Document of the Order No. D1-370/1K-230;
  • technical inspection card (or a duplicate thereof), indicating CO concentration in the exhaust gases of spark ignition engine vehicles. The limits are set out in the Order No. 2B-290/2008 of the State Road Transport Inspectorate of the Ministry of Transport and Communications; etc. (Chapter III Items 9 and 10 of the First Document of the Order No. D1-370/1K-230).

Competent authority

Regional environmental protection departments of the Ministry of the Environment of the Republic of Lithuania (Chapter II Art. 6 Law on State Environmental Control).

Distribution of costs

State

The costs of tax relief are borne by the state.

Lithuania

Further information