The Seimas has decided on excise taxes on alcohol and tobacco products: how much will prices increase? Deal

111 members of the Seimas voted in favor of the amendments to the Special Tax Law, Beata Petkevič, the only member of the Lithuanian Regional Faction, voted against, Aidas Gedvilas, a “worker”, Jonas Pinskus and Zigmantas Balčytis, members of the Lithuanian Regional Faction and Algirdas Stončaitis, a “peasant”.

Strong alcohol will cost more

In 2023 and 2024, half a liter of cider will increase in price between 8 and 10 cents a year, grape wine above 8.5 degrees will cost more between 10 and 12 cents, alcoholic cocktails will cost between 9 and 11 cents more, vermouth will cost more. at 15 degrees for 9-10 cents and fortified wine above 15 degrees 12-15 cents each.

Half a liter of vodka, bitters, brandy costs 32-36 cents, beer will cost 2-3 cents a year.

Gintautas Paluckas, a member of the Seimas Social Democratic faction, proposed applying the special tax discount to breweries that do not produce more than 50,000. hectoliters of beer, but the Seimas did not support the proposal.

Aurelijus Veryga, a member of the Peasant faction and a former health minister, said the excise tax increases were moderate.

“They are not even catching up with population income growth and the affordability of alcoholic beverages is increasing even with all the increases in excise duty,” said A. Veryga.

It is true that small breweries, of which there are 58 in Lithuania, will be able to benefit from the approved excise scheme.

Various tobacco products will get more expensive

At that time, 32 percent. The excise tax on heating tobacco will increase each year and on e-cigarette liquid by 25–32% each.

A pack of cigarettes (20 units) will increase in price between 17 and 20 cents each in 2022–2024, cigars and cigarettes (20 g) between 27 and 39 cents each, smoking tobacco (20 g) between 17 and 20 cents each, heating tobacco products (20 pcs.) – 27 to 47 cents each, and e-cigarette liquid (2 ml) – 7 to 15 cents each.

Some said smuggling would increase

According to Mykolas Majauskas, chairman of the Seimas Budget and Finance Committee, the adoption of this excise plan will reduce not only the affordability of alcohol, but will also support small independent brewers.

“If the law is passed, Lithuania will start supporting kraft beer producers, which are small and independent from other beer producers. Small brewers are the true guardians of the brewery’s cultural heritage and the creators of new modern beers. These reduced excise duties on small independent breweries are widely applied by the absolute majority of the countries of the European Union ”, said M. Majauskas.

The vice president of the Seimas, a member of the Freedom Faction, said that the excise plan presented provides clarity.

“The good news is that there is clarity with this excise plan not only for tobacco and smoking products, but also for alcoholic products,” said Mital.

For his part, Artūras Skardžius, a worker, said smuggling would increase due to increased excise duties.

“Everyone is in euphoria, but I think the smugglers are the happiest with this, because their profits will definitely increase, both smuggled cigarettes and everything else,” said A. Skardžius.

Finance Minister Gintarė Skaistė said earlier that the proposal to increase excise duties had been coordinated with various institutions.

“Excise tobacco products now represent 19% and 59% of cigarettes. It is clear that the difference is at least three times greater and considering the substitution trends that have been in the market since 2017, when the share The market for smoking tobacco was 0.3%. Here now we have 10.1% in kilograms and 20% in units. It is obvious that growth is exponential and friendly, that certain decisions must also be made due to the way in which that product is taxed ”, previously noted G.Skaist earlier.