In Lithuania, in 2022, the minimum wage will grow as will excise tax rates on tobacco products and alcoholic beverages, Lithuanian public broadcaster LRT reports.
In the new year, the minimum monthly wage before tax will be raised from 642 euros (468 euros after tax) to 730 euros (almost 534 euros after tax). The hourly minimum wage before tax will increase from 3.93 euros to 4.47 euros. LRT evaluated that this is one of the largest minimum wage increases in Lithuania in a decade. It will affect around 127,000 workers earning the minimum wage or less.
Changes in excise tax
Lithuanian excise tax rates on beer, wine, ethyl alcohol, and various types of cigarettes and tobacco products, including e-cigarette liquids, will increase from January 1, 2022.
As a result of higher excise tax rates, the price of a packet of cigarettes will increase by 17 cents, while a pack of tobacco should cost rise by 27 euro cents.
A half-a-litre can of beer will cost two cents more, a half-a-litre can of spirits – 32 cents more, and 500 mililitres wine or other fermented beverage over 8.5% ABV – ten cents more.
The price of craft beer should decrease slightly because small breweries will be subject to a 50% lower excise duty per 10,000 hectolitres of beer produced annually.
Lithuanian excise duties on all other beers will increase by around ten percent from 2022, while excise duties on wine and other fermented beverages up to 8.5% ABV will rise by around 19%.
The article originally appeared on LRT English: https://www.lrt.lt/en/news-in-english/19/1572306/who-will-be-affected-most-major-financial-changes-in-lithuania-in-2022
Lithuania to raise minimum wage and excise on tobacco and alcohol
