Excise Duty Increase Plan for 2025–2027 – Part of the Funds Allocated to the Defence Fund of the Republic of Lithuania

Lithuania is implementing an excise duty increase plan for 2025–2027, which covers energy products, fuels, tobacco and other excisable goods. This plan will be introduced gradually, meaning the tax burden for businesses will increase each year.

Importantly, a portion of the collected funds will be allocated to the Defence Fund of the Republic of Lithuania to strengthen national security.

This means that businesses must not only understand the new rates but also plan their long-term energy and raw material expenses.

Excise Duty Changes in Lithuania from 1 January 2026: What Does This Mean for Businesses and Accounting?

From 1 January 2026, significant excise duty changes will come into force in Lithuania, directly affecting businesses that manufacture, import or use excisable goods. These changes are not just tax increases – they influence financial planning, accounting, and long-term company strategies.

To ensure smooth preparation, it is important to understand how the rates will change, which products will be additionally taxed and how these changes will impact your accounting processes.

Taxation of Sweetened Non-Alcoholic Beverages

One of the most notable changes – from 2026, sweetened non-alcoholic beverages will become subject to excise duty. These are beverages containing more than 2.5 g of added sugars or sweeteners per 100 ml.

The following rates are established:

• 7.4 €/hl – if sugar content is < 8 g/100 ml.
• 21 €/hl – if sugar content is ≥ 8 g/100 ml.
• 105 €/hl – for beverage concentrates and syrups.

This will have a direct impact on product cost, retail margins, and the supply chain.

Note: 1 hl = 100 litres.

Additional Excise Duty Changes from 1 January 2026

In 2026, other important changes to the Excise Duty Law will also take effect, relevant to businesses using energy products, natural gas or gas oil.

CO₂ Component for Energy Products

A CO₂ component will apply to energy products listed in Annex 3 of the Excise Duty Law, set for 2026. This means an additional price component related to emission reduction.

Security Component for Gas Oil

Gas oil listed in Article 37(3) of the Excise Duty Law will be subject to a security component, also set for 2026. This change affects companies that heavily use diesel for transport or production.

Increase in the Fixed Part of the Excise Duty on Gas Oil

For gas oil listed in Article 37(1), the fixed component of the excise duty is changing:

• 500 €/1,000 litres in 2026
  (2025 rate – 466 €/1,000 l)

This is a significant increase that must be factored into logistics and transport costs.

Increased Excise Duties on Coal, Coke and Lignite

• 30 €/tonne in 2026
  (2025 rate – 15 €/tonne)

This change affects heat production and industrial companies.

Abolition of the Relief for Household Natural Gas Consumers

Article 581(1)(4) of the Excise Duty Law will cease to apply – household consumers and aid recipients will no longer be exempt from excise duty on natural gas.

Changes to Natural Gas Rates under Article 59

From 2026, the following rates will apply:

• 1.50 €/MWh – for gas used as heating fuel
  (previously 1.08 €/MWh)
• 1.00 €/MWh – for gas used for business purposes
  (previously 0.54 €/MWh)
• 0.50 €/MWh – for household consumers and aid recipients
  (new rate after abolition of the exemption)

These rates will directly impact energy costs for businesses.

How Will the Excise Duty Changes Affect Business Finances and Accounting?

• Cost price of goods will increase, and final product prices may change.
• Accounting systems will need updates to apply different tariff levels.
• The volume of declarations and reporting will increase.
• Long-term budgeting will be essential, considering the 2025–2027 increase plan.
• Profitability control will become important due to rising energy product costs.

3 Steps to Prepare for the Changes:

1. Assess whether your business uses or sells excisable goods – sweetened beverages, gas oil, energy products or natural gas.
2. Update financial planning and pricing to ensure increased taxes do not negatively impact profitability.
3. Review accounting processes – ensure your system can correctly apply new rates, components and declarations.

How a Professional Accounting Company Can Help You

UAB "Germalita accounting & consulting" helps companies prepare for new excise duty changes and implement them smoothly in practice.

Our team will take care of:

• Registration as an excise taxpayer and compliance support.
• Updating accounting systems according to new rates.
• Pricing and tax planning consultations.
• Preparation and submission of excise declarations.
• Cost analysis and financial risk assessment.

Our goal is to ensure that these changes are transparent, manageable and stress-free for your business.

Prepare for Excise Duty Changes Together with UAB "Germalita accounting & consulting"

Change is inevitable, but with proper preparation it becomes manageable.
If you want to ensure that excise duty changes from 2026 are accurately and clearly applied in your company’s accounting – contact us.

+370 5 203 1024
info@germalita.com

UAB "Germalita accounting & consulting" – a reliable accounting partner for your business.