If Lithuania introduces or ups pollution taxes, it should cut other levies, such as labour taxes, EU Commissioner Virginijus Sinkevičius believes.
In its recent report, the Organization for Economic Cooperation and Development (OECD) recommended that the country stop subsidising fossil fuels and introduce a carbon tax to green its economy.
Sinkevičius, the Lithuanian EU commissioner for environment, oceans and fisheries, says that if the country were to introduce new taxes, it should lower some of the existing ones.
“It has to be balanced. Perhaps labour-related taxes should be reduced. This is an option. But any tax changes must be well considered and discussed,” he told reporters during a news conference on Friday.
Sinkevičius said irrational taxes could harm the economy, adding that Lithuania had other ways to make its economy greener.
“For example, municipal and urban public transport, and green public procurement. This could be an easier way than taxes. They could be introduced in the future, but again, as I said, they should be extremely well prepared,” he said.