Refugee fuel tax may hit Lithuanian drivers but ‘is logical’, say analysts

The money collected would be used to deal the massive influx of migrants into the European Union. The tax was proposed by the German Finance Minister Wolfgang Schaeuble while giving interview to newspaper Süddeutsche Zeitung and he said it would be the best way to cope with the enormous costs of the refugee crisis.

Economist Romas Lazutka said this move was quite logical at a time when oil prices had fallen dramatically. However, if prices were to rapidly increase again, people would face a significant financial burden.

“Of course, at this moment this is a well-aimed proposal, but it should be kept in mind that fuel prices will fluctuate, because it does not depend on policy decisions, but the situation in the international oil markets, and no one can predict what will happen, now it seems that the oil could remain cheap for a long time judging by the current conditions, but I remember how 20 years ago it was announced that after 20 years oil would run out, but now we actually see the opposite trend, certainly no one dares to predict what prices will be in a few years/ However, excise will already be high.”

Lithuanian Finance Minister Rimantas Šadžius argues that additional resources to deal with the refugee problem are needed, but not necessarily from an excise tax on fuel.

Lrytas.lt, Alfa.lt