On 29 October 2026, Lithuanian President Gitanas Nausėda publicly endorsed a fiscal package that includes significant increases to gambling duties and a new sugar-sweetened beverage excise tax, aiming to reduce the projected budget deficit without triggering widespread public opposition. The proposal, drafted by the Ministry of Finance, targets two relatively inelastic consumption bases: the gambling sector, which has seen double-digit revenue growth since 2023, and sugary drinks, aligning with EU health policy directives. The measures are slated for legislative approval by year-end 2026, with effective dates of 1 January 2027 for the gambling tax hike and 1 March 2027 for the sugar tax.
Key Takeaways
- Gambling Tax Restructuring: The current 15% gross gaming revenue (GGR) tax would rise to 20% for online operators and 18% for land-based casinos. Additionally, a new 5% levy on player deposits is proposed to capture offshore operator revenues. The Ministry estimates an additional €45–50 million annually.
- Sugar-Sweetened Beverage Excise: A tiered excise based on sugar content per 100ml will be introduced: €0.05 for 5–8g, €0.12 for >8g. Pure fruit juices and milk-based drinks are exempt. Projected revenue of €30 million will be earmarked for public health programs.
- Compliance and Administrative Burden: Gambling operators must upgrade reporting systems to segregate deposit data, while beverage producers face new stock accounting requirements. The State Tax Inspectorate will issue implementing regulations by November 2026.
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