V. Janulevičius: As oil prices have doubled, the government will need to provide support to businesses
V. Janulevičius highlights the need for government support to businesses due to the doubling of oil prices.
V. Janulevičius, a member of the business community, has raised concerns about the impact of rising oil prices on Lithuanian businesses and the state budget. He questions the rationale behind high excise taxes in light of this crisis, arguing that the state should reconsider these taxes to avoid burdening the population and businesses when prices are increasing. Janulevičius pointed out that the state's budget benefits from the rising oil prices due to proportional tax increases, suggesting that the government cannot exploit this crisis for profit.
He mentioned that businesses are likely to revisit the issue of excise taxes if oil prices remain at these elevated levels, which he foresees could continue around the 120-130 euro per barrel mark, significantly up from a previous 60 euros per barrel. Janulevičius stressed that without intervention, the crisis could necessitate a discussion about supporting the economy through modifying taxation policies. The long-term solutions would involve negotiations with the European Commission to adjust these taxes.
Ultimately, Janulevičius believes that the government needs to take proactive measures to assist businesses that are facing rising operational costs linked to oil price hikes, as the current situation is unsustainable for the economy. He calls for a balanced approach that acknowledges the government's need for revenue while also providing support to industries critical to Lithuania's economic health.