The Lithuanian government on Wednesday supported a proposal from the Ministry of Environment to scrap the current one-off vehicle registration fee, replacing it with an annual tax on vehicle emissions.

If the Lithuanian parliament passes the bill, the new tax will be phased in between 2023 and 2025. Annual tax revenues are projected to reach 170 million euros.

"Vehicle emissions are rising, and we must take action to reduce them while developing alternatives," Lithuanian Minister of Environment Simonas Gentvilas said at a government meeting. Last week, the Ministry of Environment announced that 54% of car owners in Lithuania will have to pay an annual pollution tax not exceeding 100 euros.