The Lithuanian government considers levying a tax on polluting vehicles in 2020, but Finance Minister Vilius Šapoka says both taxes and incentives are needed to have Lithuanians switch to more environmentally-friendly cars.
“It is necessary to use incentives to encourage a switchover to less polluting vehicles as well as a tax to encourage [owners] to sell their polluting cars. I think such a combination could work,” he told the Žinių Radijas radio station on Tuesday.
The minister noted that cars in Lithuania were among the most polluting in the EU.
“If we fail to renew our vehicle fleets, emission allowances will cost us hundreds of millions [of euros] additionally in the next decade,” he said.
International organizations have recommended for years that Lithuania introduce a tax on polluting vehicles and broaden the property tax base.
Last year, the government moved to tax individuals' second and further residences at a rate of 0.3 percent, but the Seimas did not back the proposal.