The Lithuania Tribune: Lithuania won’t tax shale gas in first 3 or 4 years
The Lithuanian government’s strategic committee has decided that shale gas production will not be taxed in the first three or four years, Environment Minister Valentinas Mazuronis said on Thursday.
The Environment Ministry has been tasked with working out a taxation mechanism under which shale gas production would be exempted from tax during the initial three or four years and then would be subject to a 15 percent tax rate, he told reporters after the committee’s meeting.
The committee has asked the ministry to create an environment that would attract foreign investors. Following Poland’s example, Lithuania, therefore, will offer a tax break for shale gas, Mazuronis said.
It has also been decided to change the tax rate for conventional oil. It is proposed to replace the current tax rate that ranges from 2 to 20 percent, depending on the amount of oil extracted, with a flat 12 percent rate.