REPUBLIC OF LITHUANIA                                     
                                                                                
                                 LAW                                            
                                                                                
                           ON THE ROAD FUND                                     
                                                                                
      By  this Law the Seimas of the Republic of Lithuania  shall               
establish the Road Fund of the Republic of Lithuania. The purpose               
of  the  Road Fund shall be to accumulate and use funds  for  the               
development,  modernisation and ensuring of  functioning  of  the               
road network. The Government of the Republic of Lithuania or  the               
institution   authorised  by  it  shall   be   the   holder   and               
administrator of the Road Fund.                                                 
                                                                                
     Article 1. Sources of the Road Fund                                        
     The Road Fund shall consist of:                                            
     1) deductions from sales revenue;                                          
      2)  a portion of the excise tax on sold petrol, diesel fuel               
and lubricants;                                                                 
     3) vehicle owner's tax;                                                    
      4)  fee  for  the stay in the territory of the Republic  of               
Lithuania of the vehicles  registered in foreign countries;                     
      5)  fee  for  a  permit to drive vehicles the  measurements               
whereof   with   or   without  freight  exceed  the   permissible               
measurements or when weight exceeds the permissible  load  on  an               
axle or an over-all gross weight of the vehicle;                                
      6)  fee  for  a permit to perform any type of work  on  any               
portion of the road complex;                                                    
     7) state budgetary funds; and                                              
      8)  purposive  funds of legal, natural  persons  and  other               
states.                                                                         
                                                                                
     Article 2. Deductions from Sales Revenue                                   
      Deductions from sales revenue into the Road Fund  shall  be               
paid  by the enterprises which have the rights of a legal person,               
as  well  as those which do not have them, and the legal  persons               
who  engage in non-commercial activities, but who receive revenue               
from economic-commercial activities.                                            
        The   following  shall  be  relieved  from  paying  these               
deductions into the Road Fund:                                                  
      1)  legal  and  natural  persons  engaged  in  agricultural               
production and special-purpose enterprises which render  services               
to  the  agriculture  if the revenue from the  sold  agricultural               
products  and services to the agriculture amount to at  least  50               
per cent of all sales revenue;                                                  
      2)  creative  unions  (unions  of  architects,  scientists,               
artists,  designers, photographers, composers,  cinematographers,               
writers,  folk artists, theatre, journalists), their  enterprises               
and  organisations which use at least 50 per cent of the  revenue               
for the needs of creative unions;                                               
      3)  enterprises wherein at least 50 per cent  of  employees               
with  a  limited  capacity for work are  engaged  and  the  sales               
revenue whereof is received only for the products manufactured by               
them;                                                                           
     4) budgetary institutions;                                                 
      5) economic partnerships and private (personal) enterprises               
without the rights of a legal person, which have acquired patents               
for their activities;                                                           
     6) economic entities which pay an excise tax on sold petrol,               
diesel fuel and lubricants shall not pay deductions into the Road               
Fund for an appropriate portion of sales revenue;                               
      7)  enterprises which are registered and operating in  free               
economic zones; and                                                             
      8) forest enterprises - from deductions for that portion of               
sales  revenue which is allotted to the Forest Fund in accordance               
with  the Forestry Law of the Republic of Lithuania. (Amended  25               
June 1996)                                                                      
      Payers shall themselves compute and pay deductions into the               
Road Fund from the sales revenue for each month's turnover on  or               
before  the 25th day of the following month. Upon failure to  pay               
when  due,  interest  shall be charged  in  accordance  with  the               
procedure established in the Law of the Republic of Lithuania  on               
Tax Administration. (Amended 30 April 1996)                                     
      The  procedure for computation, payment and control of  the               
deductions from sales revenue, as well as the rates thereof shall               
be  established  by the Government of the Republic  of  Lithuania               
without exceeding the margin set forth in Annex 1 of this Law.                  
      The Government of the Republic of Lithuania shall each year               
reduce  the rates of deductions from sales revenue so that  these               
deductions  shall  be  abolished  by  the  year  2000,  gradually               
imposing the tax on motor vehicles and busses.                                  
                                                                                
      Article  3. Portion of an Excise Revenue on  the  Sold                    
          Petrol, Diesel Fuel                                                   
               and Lubricants                                                   
      Beginning with 1996, 15 per cent of the excise revenue from               
sold  petrol, diesel fuel and lubricants shall be transferred  to               
the  Road  Fund.  Deductions shall be each year increased  by  10               
points  and during the last year - by 5 points, until they  total               
up to 50 per cent of aforesaid excise revenue.                                  
     The Ministry of Finance shall each month transfer deductions               
from  the  excise revenue to the Road Fund on or before the  25th               
day of the following month. (Amended 7 December 1995)                           
                                                                                
     Article 4. Vehicle Owner's Tax on Heavy, Heavy-Passenger and               
          Special Vehicles                                                      
     The tax on heavy, heavy-passenger and special vehicles shall               
be  paid by the owners of these vehicles which are registered  in               
the Republic of Lithuania.                                                      
      The  tax  shall be paid by the owners of vehicles into  the               
Road Fund each year by 1 July or each quarter by the first day of               
the third month in equal portions.                                              
      The Government of the Republic of Lithuania shall establish               
the procedure for payment of the tax and control thereof, as well               
as the rates without violating the marginal rates provided for in               
Annex 2 of this Law.                                                            
                                                                                
      Article  5. Fee for the Stay in the Territory  of  the                    
          Republic of Lithuania  of the Vehicles  Registered                    
          in  other Countries                                                   
      The  fee  for the vehicles which are registered in  foreign               
countries  shall be paid by the owners or responsible persons  of               
these  vehicles when a vehicle crosses the state  border  of  the               
Republic of Lithuania.                                                          
      The  fee  shall  not be imposed on the  vehicles  of  those               
countries which have appropriate interstate agreements  with  the               
Republic   of   Lithuania,  or  when  they  carry   charity   and               
humanitarian reliefs.                                                           
      The fee shall be collected by an institution authorised  by               
the  Government  of  the Republic of Lithuania.  Fee  rates,  not               
exceeding  the  rates provided in Annex 3 of this Law,  procedure               
for  payment  and  control thereof shall be  established  by  the               
Government of the Republic of Lithuania.                                        
                                                                                
      Article  6. Fee  for a Permit to  Drive  Vehicles  the                    
          Measurements whereof with  a  Freight or without                      
          it Exceed the  Permissible Measurements or when                       
          Weight Exceeds the Permissible Load on an Axle                        
          or an Over-All Gross Weight of the Vehicle                            
      The  procedure for the movement of bulk freight and driving               
heavy  weight vehicles shall be established and permits shall  be               
issued  by  the institution authorised by the Government  of  the               
Republic  of  Lithuania.  Each  time  an  appropriate  permit  is               
received,  the  fee shall be paid in accordance  with  the  rates               
provided in Annex 4 of this Law.                                                
                                                                                
     Article 7. Other Revenues of the Road Fund                                 
      The  fee  for a permit to perform any type of work  on  any               
portion of the road complex shall be collected by the institution               
which issues permits. The fee amount shall be established in each               
specific case taking into consideration the type of work,  damage               
done  to roads and the environment, cost of reconstruction works,               
losses due to the changes in traffic conditions, and the duration               
of work.                                                                        
      State budgetary funds shall be transferred to the Road Fund               
if this is provided for in state and local authority budgets of a               
relevant  year or if such decisions are adopted by the Government               
of  the  Republic  of  Lithuania  within  its  jurisdiction  when               
implementing the budget.                                                        
      Funds  of individual legal and natural persons, as well  as               
funds transferred by other states may be paid into the Road Fund.               
                                                                                
     Article 8. Utilisation of Funds of the Road Fund                           
      Funds  of  the  Road  Fund  shall  be  used  for  building,               
modernisation,  repairing  and  maintenance  of  motorways,   and               
implementation  of road safety measures. The funds  of  the  Road               
Fund  shall  be  used  by  the  institution  authorised  by   the               
Government  of the Republic of Lithuania according to  an  annual               
estimate approved by the Government.                                            
      The  procedure for utilisation of the Road  Fund  shall  be               
established by the Government of the Republic of Lithuania  which               
shall appoint institutions for the implementation of this Law.                  
                                                                                
      Article  9. Utilisation of Funds of the Road  Fund  for                   
          Maintenance of Local Roads and Streets of Trunk                       
          Roads                                                                 
      Annual estimates shall provide for 20 percent of the  funds               
of  the Road Fund to be used for building, repairing, maintenance               
of  local roads, forest, national park roads and streets of truck               
roads  according  to  the lists of projects  submitted  by  local               
authorities  and  amount of financing thereof.  (Amended  16  May               
1995)                                                                           
                                                                                
     Article 10. Guarantees of Activities of the Road Fund                      
     Revenues of the Road Fund cannot be transferred to the state               
budget or used for financing other needs of the State.                          
     Funds of the Road Fund which are not used in accordance with               
an  annual  estimate  shall be a source  for  financing  measures               
provided in the estimate of the succeeding year.                                
                                                                                
     Article 11. Coming into Effect of the Law                                  
      The Law on the Road Fund of the Republic of Lithuania shall               
come into effect on 1 January 1996, except for the provisions  of               
Paragraph 1 of Article 2 and Annex 1 which shall become valid  on               
15 January 1995.                                                                
                                                                                
      I  promulgate this Law passed by the Seimas of the Republic               
of Lithuania.                                                                   
                                                                                
Algirdas Brazauskas                                                             
President of the Republic                                                       
                                                                                
Vilnius                                                                         
24 January 1995,                                                                
No.I-766                                                                        
(As amended by 25 June 1996)                                                    
                                                                                
                                                                                
                                   Annex 1                                      
                              Law of the Republic                               
                              of Lithuania No.I-766                             
                              24 January 1995                                   
                                                                                
              Maximum Rates of the Deductions from                              
                Sales Revenue into the Road Fund                                
                                                                                
      The following shall pay the maximum rates of the deductions               
of sales revenue into the Road Fund:                                            
       1)   industrial,  construction,  repair,  motor  transport               
enterprises  - up to 0.6 percent of sales revenue;                              
     2) state-owned enterprises as well as enterprises engaged in               
co-operative  and private trade, supply - up to  0.3  percent  of               
sales revenue (proceeds);                                                       
      3)  state  gas  enterprises - up to 0.1  percent  of  sales               
revenue;                                                                        
      4)  banks  -  up to 1 percent of income received  from  the               
margin and for other services rendered; and                                     
     5) other enterprises - up to 0.5 percent of sales revenue.                 
      Deductions  shall  be  collected  from  the  sales  revenue               
computed in accordance with the procedure established in the  Law               
on  Taxes on Profits of Legal Persons, and for those which do not               
have the rights of a legal person - from sales revenue.                         
                                                                                
                                                                                
                                             Annex 2                            
                                        Law of the Republic                     
                                        of Lithuania No.I-766                   
                                        24 January 1995                         
                                                                                
              Marginal Rates of Vehicle Owner's Tax                             
                                                                                
      The  marginal rates of the vehicle owner's tax shall be  as               
follows:                                                                        
      1)  for heavy vehicles and their combinations with an over-               
all gross weight -                                                              
          up to 3,5 tonnes    Lt 100-300                                        
          from 3,5 to 10 tonnes    Lt 300-800                                   
          from 10 to 24 tonnes     Lt 500-1.000                                 
          exceeding 24 tonnes Lt 1.000-3.000                                    
     2) for heavy-passenger vehicles    Lt 200-800                              
     3) special vehicles Lt 100-300                                             
      If during the validity period of marginal rates the summary               
price  index has exceeded 1,2, the Government of the Republic  of               
Lithuania shall once a year (prior to the start of the  year  for               
which  the  tax shall be paid) index the rates provided  in  this               
Annex according to the summary price index.                                     
                                                                                
                                             Annex 3                            
                                        Law of the Republic                     
                                        of Lithuania No.I-766                   
                                        24 January 1995                         
                                                                                
              Rates of Fee for the Stay in the Territory                        
               of the Republic of Lithuania of Vehicles                         
              which are Registered in Foreign Countries                         
                                                                                
     The following fee rates for the stay in the territory of the               
Republic  of  Lithuania  of the vehicles  registered  in  foreign               
countries shall be established:                                                 
     1) for buses -                                                             
          up to 10 seats up to Lt  60                                           
          from 11 to 30 seats up to Lt  120                                     
          more than 30 seats  up to Lt  220                                     
     2) for vehicles with an over-all gross weight -                            
          up to 3,5 tonnes    up to Lt  80                                      
          from 3,5 to 10 tonnes    up to Lt  160                                
          from 10 to 24 tonnes     up to Lt  240                                
          exceeding 24 tonnes up to Lt  400                                     
     3) for special vehicles  up to Lt  120                                     
      If  during  the validity period of rates the summary  price               
index  has  exceeded  1,2,  the Government  of  the  Republic  of               
Lithuania shall once a year (prior to the start of the  year  for               
which  the  fee shall be paid) index the rates provided  in  this               
Annex according to the summary price index.                                     
                                                                                
                                             Annex 4                            
                                        Law of the Republic                     
                                        of Lithuania No.I-766                   
                                        24 January 1995                         
                                                                                
       Rates of Fee for a Permit to Pass over Roads by Vehicles                 
       the Measurements whereof with or without Freight Exceed                  
       the Permissible Measurements or when the Weight Exceeds                  
            the Permissible Load on an Axle or an Over-All                      
                     Gross Weight of the Vehicle                                
                                                                                
      The following fee rates for a permit to pass over roads  by               
the  vehicles, registered in the Republic of Lithuania and  other               
countries,  the  measurements whereof  with  or  without  freight               
exceed  the  permissible measurements or when the weight  exceeds               
the  permissible load on an axle or an over-all gross  weight  of               
the vehicle:                                                                    
                                                                                
          lump-sum  yearly                                                      
     for every 10 cm                                                            
     exceeding the permissible width    Lt   100  up to 10 times                
                    of a lump-sum                                               
     for every 1 metre                                                          
     exceeding the permissible length   Lt   100  up to 10 times                
                    of a lump-sum                                               
     for every 10 cm                                                            
     exceeding the permissible height   Lt   150  up to 10 times                
                    of a lump-sum                                               
     for every tonne exceeding the                                              
     permissible 10-tonne axle load of                                          
     a vehicle Lt    200      -                                                 
                                                                                
     for vehicles with an over-all gross weight                                 
     exceeding 40 tonnes Lt   1.000          -                                  
                                                                                
      If  during  the validity period of rates the summary  price               
index  has  exceeded  1,2,  the Government  of  the  Republic  of               
Lithuania shall once a year (prior to the start of the  year  for               
which  the  fee shall be paid) index the rates provided  in  this               
Annex according to the summary price index.