27/01/17
Accessibility tools
Service tools
Language
Navigation path
Author(s): Baudouin Lamine and Erki Lohmuste
Do the Baltic States need to tax passenger cars more
(368 kB) 
Energy and carbon intensities in the Baltics are among the highest in the EU, in particular in transport. Next to low fuel taxes, the likely reason is that Estonia and Lithuania do not apply any car tax while the purchase of corporate passenger cars benefits from VAT deductibility in Estonia and Latvia. In order to reduce the welfare losses of the current setup, this note argues that there is a strong case for applying fiscal measures aimed at reducing CO2 emission by passenger cars. The policy mix should take into account country-specific characteristics like e.g. purchasing power, availability of public transport, or the need to renew the currently rather old car fleets.
| KC-XA-14-011-EN-N (online) | |
| ISBN 978-92-79-40575-4 (online) | |
| doi: 10.2765/91146 (online) |
The views expressed in the ECFIN Country Focus are those of the authors only and do not necessarily correspond to those of the Directorate-General for Economic and financial Affairs or the European Commission.
Additional tools