Lietuviškai

           THE CONSTITUTIONAL COURT OF THE REPUBLIC OF           
                            LITHUANIA                            

                             RULING                              
        ON THE COMPLIANCE OF RESOLUTION OF THE GOVERNMENT        
           OF THE REPUBLIC OF LITHUANIA NO. 99 "ON THE           
       DEDUCTIONS FOR BUILDING, REPAIR AND MAINTENANCE OF        
        PUBLIC AUTOMOBILE ROADS" OF 23 FEBRUARY 1993 WITH        
          THE CONSTITUTION OF THE REPUBLIC OF LITHUANIA          

                           3 June 2002                           
                             Vilnius                             
  
     The  Constitutional  Court  of  the  Republic  of Lithuania,
composed  of  the  Justices  of  the Constitutional Court Armanas
Abramavičius,   Egidijus  Jarašiūnas,  Egidijus  Kūris,  Kęstutis
Lapinskas,   Zenonas   Namavičius,  Augustinas  Normantas,  Jonas
Prapiestis, Vytautas Sinkevičius and Stasys Sačiokas.
     with the secretary of the hearing-Daiva Pitrėnaitė,
     in the presence of:
     the  representative  of  the party concerned, the Government
of  the  Republic  of  Lithuania,  who  was  Janina  Žukauskienė,
Director  of  Law  Department  of  the  Ministry of Transport and
Communications of the Republic of Lithuania,
     pursuant  to  Articles  102  and  105 of the Constitution of
the  Republic  of  Lithuania  and  Article  1  of the Republic of
Lithuania  Law  on  the  Constitutional  Court, on 29 May 2002 in
its  public  hearing heard Case No. 28/2000 which originated in a
petition  of  the  Kaunas  City  District  Court, the petitioner,
requesting  to  determine whether Resolution of the Government of
the   Republic  of  Lithuania  No.  99  "On  the  Deductions  for
Building,  Repair  and Maintenance of Public Automobile Roads" of
23  February  1993  was  in compliance with Item 15 of Article 67
of the Constitution of the Republic of Lithuania.

     The Constitutional Court
                        has established:                         

                                I                                
     The   petitioner,   the  Kaunas  City  District  Court,  was
investigating   a  civil  case.  The  said  court  suspended  the
investigation  of  the  case  by  its  order  and  addressed  the
Constitutional  Court  requesting to determine whether Resolution
of  the  Government  of  the Republic of Lithuania No. 99 "On the
Deductions   for  Building,  Repair  and  Maintenance  of  Public
Automobile   Roads"   of   23  February  1993  (Official  Gazette
Valstybės  žinios,  1993,  No. 8-182) was in compliance with Item
15  of  Article  67  of  the  Constitution  of  the  Republic  of
Lithuania.

                               II                                
     The   petitioner  grounds  his  petition  on  the  following
arguments.
     According   to   Paragraph   3   of   Article   127  of  the
Constitution,  laws  of the Republic of Lithuania establish other
budgetary  payments  and  dues.  Item  15  of  Article  67 of the
Constitution   establishes  that  the  Seimas  establishes  state
taxes  and  other  obligatory  payments.  However, the deductions
for  building,  repair  and  maintenance  of  public  roads  were
established  by  Government  Resolution No. 99 "On the Deductions
for   Building,  Repair  and  Maintenance  of  Public  Automobile
Roads"  of  23  February  1993,  but  not by a law adopted by the
Seimas.   Therefore,  the  petitioner  is  of  the  opinion  that
Government  Resolution  No.  99  "On the Deductions for Building,
Repair   and  Maintenance  of  Public  Automobile  Roads"  of  23
February  1993  conflicts  with  Item  15  of  Article  67 of the
Constitution.

                               III                               
     In  the  course  of  the  preparation  of  the  case for the
Constitutional   Court   hearing,   written   explanations   were
received  from  the  representatives  of the party concerned, the
Government,   who  were  J.  Žukauskienė,  Director  of  the  Law
Department  of  the  Ministry of Transport and Communications and
J.   Puluikis,   Deputy   Director   General  of  the  Lithuanian
Automobile   Roads'   Administration   under   the   Ministry  of
Transport and Communications.
     The  representatives  of  the party concerned emphasise that
after   the   independence  of  the  Lithuanian  State  had  been
restored,  on  8  January  1991 the Government adopted Resolution
No.  21  "On  the  Objective Deductions for Building of Roads" in
order  to  ensure  further  financing  of  building,  repair  and
maintenance  of  public  roads and established certain deductions
from  enterprises,  which had some income from operation of means
of transport.
     On  17  July 1991, the Government adopted Resolution No. 280
"On  the  Deductions  and  Dues  for  Repair  and  Maintenance of
Public  Automobile  Roads" which established that "dues collected
from   the   owners   of   means  of  transport  and  incomes  of
enterprises  having  the  rights  of  legal  and  natural persons
shall  be  used  to  finance  the  repairing  and  maintenance of
public automobile roads".
     On  8  October  1991,  the  Seimas  adopted  the  Law on the
Principles  of  the  Activities  of Transport, Article 6 of which
established  that  for  the  use  of  automobile  roads legal and
natural  persons  shall pay dues in the amount established by the
Government.  The  representatives of the party concerned maintain
that  in  the  course of implementation of the said provisions of
the   said   law,  on  8  January  1992  the  Government  adopted
Resolution  No.  10  "On  the  Partial Amendment of Resolution of
the  Government  of  the Republic of Lithuania No. 280 of 17 July
1991",  while  on  23  February 1993 it adopted Resolution No. 99
"On  the  Deductions  for  Building,  Repair  and  Maintenance of
Public Automobile Roads".
     The  representatives  of  the party concerned also note that
the  Republic  of  Lithuania  Law on the Road Fund was adopted on
24   January   1995.   Government  Resolution  No.  778  "On  the
Implementation  of  the Law on Road Fund" of 2 June 1995 annulled
disputed  Government  Resolution  No.  99  "On the Deductions for
Building,  Repair  and Maintenance of Public Automobile Roads" of
23  February  1993.  Taking  into consideration that the disputed
legal  act  is  abolished  and  on  the  basis  of Paragraph 4 of
Article   69   of   the   Republic   of   Lithuania  Law  on  the
Constitutional   Court,   the   representatives   of   the  party
concerned request to dismiss the initiated legal proceedings.

                               IV                                
     At  the  Constitutional Court hearing, the representative of
the  party  concerned,  the  Government, J. Žukauskienė presented
an  additional  written  explanation and an official letter of V.
Puodžiukas,   Director   General  of  the  Lithuanian  Automobile
Roads' Administration, which were both added to the case.
     At   the   Constitutional   Court  hearing,  J.  Žukauskienė
virtually  reiterated  the  statements  set  down  in her written
explanations.

     The Constitutional Court
                           holds that:                           

                                I                                
     1.  On  23  February 1993, the Government adopted Resolution
No.  99  "On  the Deductions for Building, Repair and Maintenance
of Public Automobile Roads".
     The  petitioner  requests  to  determine  whether Government
Resolution  No.  99  "On  the Deductions for Building, Repair and
Maintenance  of  Public  Automobile Roads" of 23 February 1993 is
in  compliance  with  Item  15 of Article 67 of the Constitution.
The  petitioner  maintains  that  Item  15  of  Article 67 of the
Constitution  provides  that  the  Seimas establishes state taxes
and  other  obligatory  payments.  However,  the  deductions  for
building,  repair  and  maintenance  of  public  automobile roads
were established by a governmental resolution.
     2.  On  2  June  1995  the Government adopted Resolution No.
788  "On  Implementation  of  the  Law  on  the  Road Fund" which
annulled the disputed resolution.
     According  to  Paragraph  4  of Article 69 of the Law on the
Constitutional  Court,  annulment of a legal act shall be grounds
to  dismiss  the  initiated legal proceedings. The wording "shall
be  grounds  <...>  to  dismiss  the initiated legal proceedings"
should   be   interpreted   as  providing  for  a  right  of  the
Constitutional    Court,    taking    into    consideration   the
circumstances   of   the   case,   to   dismiss   the   initiated
proceedings,  however,  not  establishing that in every case when
a  disputed  legal  act  had  been abolished, the initiated legal
proceeding  must  be  dismissed  (Rulings  of  the Constitutional
Court of 5 April 2000, 4 March 2002, 10 May 2002).
     It  needs  to  be  noted that after the Kaunas City District
Court  had  addressed  the Constitutional Court with a request to
determine  whether  the  disputed  governmental resolution was in
compliance  with  the  Constitution,  while if the Constitutional
Court  did  not  decide  this  question in essence, the doubts of
the   local   court   as   to  the  compliance  of  the  disputed
governmental   resolution   would   not  be  eliminated.  Without
eliminating  these  doubts,  the  application  of this act in the
adjudication  of  the  case  at  the  local  court  could cause a
violation of constitutional rights and freedoms.

                               II                                
     1.  Item  15  of  Article 67 of the Constitution establishes
that  the  Seimas  "establishes  State taxes and other obligatory
payments".
     It  needs  to be noted that this constitutional provision is
inseparable  from  the provision of Paragraph 3 of Article 127 of
the   Constitution  establishing  that  "taxes,  other  budgetary
payments,  and  dues  shall  be  established  by  the laws of the
Republic    of    Lithuania".   Therefore,   according   to   the
Constitution,  only  the  Seimas  may  establish  state taxes and
other obligatory payments and only by a law.
     State  taxes  and  other  obligatory payments are a monetary
obligation  of  legal  subjects  to the state. The constitutional
requirement   to  establish  state  taxes  and  other  obligatory
payments  only  by  a  law  is  an  important  guarantee  of  the
protection  of  individuals'  rights. The law, establishing taxes
and  other  obligatory  payments,  must  determine such essential
elements  of  a  tax  or  other  obligatory  payment  as a payer,
object,  amounts,  exemptions and terms of payments of the tax or
other obligatory payment.
     The   Constitutional  Court  more  than  once  held  in  its
rulings   that   if   the   Constitution   directly   establishes
authorisations   of   a  certain  public  institution,  no  other
institution   may  take  over  these  authorisations,  while  the
former   institution   may   not   transfer   or   renounce   its
authorisations.   Such  authorisations  may  not  be  changed  or
limited  by  the  law. Therefore, the Seimas may not transfer its
constitutional   authorisations  to  establish  state  taxes  and
other  obligatory  payments to another institution, including the
Government.  The  Government  or  any  other  institution may not
take over such authorisations.
     2.  On  23  February 1993, the Government adopted Resolution
No.  99  "On  the Deductions for Building, Repair and Maintenance
of  Public  Automobile  Roads"  which established deductions from
received  income  (to  the  extent  of  the  turnover)  and their
amounts.  These  deductions  were  allocated for building, repair
and  maintenance  of  public  automobile  roads.  The enterprises
having  rights  of  legal  or  natural persons, as well as banks,
had  to  transfer  those  deductions  to special automobile roads
accounts.  The  amounts  of  deductions  from the income received
for  realization  of petrol and diesel fuel were also established
in   the   said   resolution.   The  Ministry  of  Transport  and
Communications   was  responsible  for  the  establishment  of  a
calculation procedure of the deductions.
     3.  It  needs  to  be  noted  that the disputed governmental
resolution  had  established  a monetary obligation of the state,
i.e.  deductions  for  building, repair and maintenance of public
automobile   roads.  The  same  resolution  also  determined  the
payers, object and amounts of the deductions.
     Therefore,    "deductions    for    building,   repair   and
maintenance  of  public automobile roads" are obligatory payments
in  the  sense  of  Item  15  of  Article 67 of the Constitution.
According  to  the Constitution, only a law adopted by the Seimas
ought  to  have  established  such  payments  and their essential
elements.
     4.  Taking  account  of  the  arguments set forth, one is to
conclude  that  Government  Resolution  No. 99 "On the Deductions
for   Building,  Repair  and  Maintenance  of  Public  Automobile
Roads"  of  23  February  1993  was  in  conflict with Item 15 of
Article 67 of the Constitution.

     Conforming  to  Articles  102 and 105 of the Constitution of
the  Republic  of  Lithuania and Articles 1, 53, 54, 55 and 56 of
the  Republic  of  Lithuania Law on the Constitutional Court, the
Constitutional  Court  of  the  Republic  of Lithuania has passed
the following
  
                             ruling:                             

     To  recognize  that  Resolution  of  the  Government  of the
Republic  of  Lithuania  No.  99 "On the Deductions for Building,
Repair   and  Maintenance  of  Public  Automobile  Roads"  of  23
February  1993  conflicted  with  Item  15  of  Article 67 of the
Constitution of the Republic of Lithuania.
     This  Constitutional  Court  ruling is final and not subject
to appeal.
     The  ruling  is  promulgated  on  behalf  of the Republic of
Lithuania.