The Lithuanian government is considering removing VAT from electric vehicles and reducing it to nine per cent on hybrid vehicles in an effort to encourage more Lithuanians to embrace sustainable car travel.
Environmentally friendly vehicles are increasingly popular in Lithuania and are already given several advantages, such as being able to drive in bus lanes and park for free in city centres. Ministers hope that in addition to these measures – which do not apply to hybrid vehicles – the reduction in VAT will speed up the spread of electric vehicles in the country.
Twenty members of Lithuania’s parliament backed an amendment to current legislation that would introduce the proposals. Car manufacturers welcomed the move, but said that any efforts to increase the numbers of electric vehicles would have to include more and better charging facilities in Lithuania. 
Original author: Lewis Macdonald