On 1 October 2026, Lithuania’s Minister of Agriculture presented a legislative proposal to grant excise duty exemptions exclusively to enterprises that operate within the integrated food supply chain – from primary agricultural production through processing to wholesale distribution. The measure aims to mitigate the impact of rising energy and input costs on food affordability while preventing windfall gains in unrelated sectors. The draft amendment to the Excise Duty Law defines “food chain participant” using NACE codes and requires certification by the State Food and Veterinary Service. The relief would apply to excise duties on electricity, natural gas, and heating fuels used directly in food production, storage, and transportation. The proposal is scheduled for parliamentary debate in November 2026, with a target effective date of 1 January 2027. Companies outside the defined chain – such as logistics providers serving multiple sectors or packaging manufacturers – will not qualify, prompting concerns about competitive distortions.
Key Takeaways
- Narrow Eligibility Scope: Only entities holding a valid “Food Chain Participant” certificate and performing activities listed in Annex I of the proposal (crop cultivation, animal husbandry, slaughtering, dairy processing, grain milling, and wholesale of raw agricultural products) can claim the exemption.
- Certification and Audit Trail: Applicants must submit quarterly energy consumption reports linked to certified production volumes; the State Tax Inspectorate (VMI) will cross‑check data with the Food and Veterinary Service to prevent abuse.
- Fiscal Impact and State Aid Assessment: The Ministry estimates the relief will cost €42 million annually in foregone excise revenue. The European Commission will be notified under State aid rules (GBER Article 38), and the scheme includes a sunset clause expiring on 31 December 2029 unless extended.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement