Republic of Lithuania                                     
                               Law                                              
                                                                                
                                                                                
                        On Pollution Tax                                        
                                                                                
                                                                                
     Pollution tax  is an  element of economic mechanism designed               
to reduce pollution  and its negative effect on the environment.                
     As used in this law:                                                       
                                                                                
     the  optimum   permissible  pollution  (OPP)  means  optimum               
permissible amount  of pollutants discharged into the environment               
by a  separate source of pollution per time unit, which, upon the               
assessment of  the effect  of other  sources of pollution and the               
perspective of  the development  of industrial  enterprises, does               
not exceed the established quality standards of the environment;                
                                                                                
     temporarily permitted  pollution (TPP)  means the  temporary               
permissible amount  of pollutants discharged into the environment               
per time unit determined for the period until the OPP is reached;               
                                                                                
     standard  means  the  amount  of  pollutants  (OPP  or  TPP)               
permitted to  be  discharged  into  the  environment  during  the               
taxable period.                                                                 
                                                                                
                                                                                
                            Chapter 1                                           
                                                                                
                                                                                
              Taxable  Object  and Taxable Entities                             
                                                                                
     Article 1.                                                                 
                                                                                
     The taxable object shall be physical, chemical or biological               
pollutants having  negative effect  on man  and environment.  The               
taxes shall  be determined   taking  into account  the amount  of               
pollutants, their injuriousness, the standard and the time of its               
implementation.                                                                 
                                                                                
     Article 2.                                                                 
                                                                                
     Pollution tax  shall be  payed by  legal and natural persons               
who pollute the environment and  for whom the standards have been               
determined.                                                                     
                                                                                
                                                                                
                            Chapter 2                                           
                                                                                
                                                                                
       Tax Rates and the Procedure for their Establishment                      
                                                                                
     Article 3.                                                                 
                                                                                
     Tax rates  shall be  established per  one ton of pollutants.               
Tax rates  for water pollutants and air contaminants according to               
the extent  of their  deviation from  the standards  shall be  as               
follows:                                                                        
     1)  basic;                                                                 
     2) increased;                                                              
     3) reduced.                                                                
                                                                                
     Article 4.                                                                 
                                                                                
     For the  pollution of  water the polluter shall be liable to               
pay taxes at the following  rate:                                               
     1)  when  the  determined    standard  is  not  exceeded  --               
according to the basic rate provided  in  Appendix 1 of this law;               
     2) when  the determined standard is exceeded -- according to               
the increased  rate   calculated according  to formula 1 provided               
in  Appendix 3.                                                                 
                                                                                
     Article 5.                                                                 
                                                                                
     For the  discharge    of  contaminants into  the  atmosphere               
from stationary  sources, the  polluter   shall be  liable to pay               
taxes at the following  rate:                                                   
     1) when the determined standard is not exceeded -- according               
to the basic rate provided  in  Appendix 2 of this law.                         
     2) when  the determined standard is exceeded -- according to               
the increased rate calculated as follows:                                       
     a) for  power engineering  facilities according to formula 1               
provided in Appendix 3,                                                         
     b) for  industrial  enterprises    according  to  formula  2               
provided in  Appendix 3.                                                        
     For each  ton of discharged contaminants from mobile sources               
an enterprise  shall pay  the tax  at the basic rate provided  in               
Appendix 2 of this law.                                                         
     Vehicles with neutralizers shall be exempt from taxation.                  
                                                                                
     Article 6.                                                                 
                                                                                
     If the  discharged amount  is lower  than the OPP, the basic               
rate shall be reduced according to formula 3 of Appendix 3.                     
                                                                                
     Article 7.                                                                 
                                                                                
     Legal and  natural persons  implementing  nature  protection               
measures with  their own resources and reducing the pollution not               
less than  by 25  percent shall be exempt from the payment of tax               
at the  basic rate for reimbursing the expenditure for the period               
not exceeding 3 years.                                                          
                                                                                
     Article 8.                                                                 
                                                                                
     Legal and  natural persons  which do not keep an estimate of               
discharged pollutants  shall pay  the tax according to the amount               
of discharged  pollutants estimated  by the  officer of the state               
environmental protection control.                                               
                                                                                
                                                                                
                            Chapter 3                                           
                                                                                
                                                                                
              Procedure of Payment and its Control                              
                                                                                
     Article 9.                                                                 
                                                                                
     The tax  shall be computed according to the established form               
and payed by the taxable entities.                                              
                                                                                
     Article 10.                                                                
                                                                                
     The  tax  shall  be  payed  by  advance  payments  in  equal               
installments   computed from the total amount of annual tax which               
is computed  according to  the basic rate for the standard amount               
of pollutants  once in  three months  up to  the 15th  day of the               
first month  of the  next quarter.  At the  end of  the year  the               
amount of  tax shall  be recalculated  according to the amount of               
pollutants actually  discharged, and  annual estimates  shall  be               
filed with the State Tax Inspectorate on or before 1 February.                  
                                                                                
     Article 11.                                                                
                                                                                
     The Department  of Environmental  Protection of the Republic               
of Lithuania  in conjunction  with the Ministry of Finance of the               
Republic  of   Lithuania  shall   control  the  accuracy  of  the               
computation of  taxes. Taxes  shall be  paid  for  any  concealed               
amount of pollutants, and the economic sanction of increasing the               
rate of tax tenfold shall be applied.                                           
                                                                                
     Article 12.                                                                
                                                                                
     Legal and  natural  persons  timely  not  subjected  to  the               
payment of  taxes shall  be liable to pay same for the period not               
exceeding two  preceeding years. The period for which corrections               
in the  erroneously imposed  tax may  be made,  as  well  as  the               
required amounts  of tax  may be refunded or recovered shall also               
embrace two years.                                                              
                                                                                
     Article 13.                                                                
                                                                                
     Failure to  pay the required tax by the due date shall incur               
liability for  interet at  the rate  of 0.5  percent for each day               
that the tax remains unpaid.                                                    
                                                                                
                                                                                
Vytautas Landsbergis                                                            
                                                                                
President Supreme Council                                                       
Republic of Lithuania                                                           
                                                                                
                                                                                
Vilnius                                                                         
2 April 1991                                                                    
No. I-1188