Lithuania: Few companies pay evaded road tax

Lithuania faces a significant challenge in collecting road taxes from heavy goods vehicles, with only a small fraction of companies having voluntarily settled their debts. Out of roughly 800 companies identified as having evaded the tax, just five have come forward to pay, according to the Lithuanian Transport Safety Administration (LTSA).

These five companies have collectively paid 9,950 euros towards their outstanding obligations. The State Tax Inspectorate (VMI) confirmed the amount paid. A special payment code was introduced on May 25 to facilitate voluntary payments for past-due taxes, offering carriers a chance to settle before debt recovery processes begin.

LTSA representatives estimate that around 800 companies owe the tax. The VMI plans to contact these companies individually next week to urge them to comply. This initiative follows a statement in April by the Minister of Transport, Juras Taminskas, who revealed that the state budget may have lost between 25 and 36 million euros since 2020 due to this tax loophole. These funds were intended for road infrastructure and the Road Fund.

The issue stems from a change in an LTSA director's order in 2020, which automated the system for technical inspections. The association "Transeksta" began receiving data on technical inspections conducted in the EU but failed to verify if taxes had been paid for vehicles registered in Lithuania. The annual tax for a standard truck and trailer combination is approximately 433 euros.

While a general payment code was previously available, the new, specific code (7930) is intended to simplify the administration and identification of voluntarily paid back taxes. Furthermore, an LTSA order effective May 1 stipulates that technical inspections performed abroad are only recognized if proof of payment for the road tax on Lithuanian-registered heavy goods vehicles is provided.