East Lindsey District Council has announced an extension of its free parking until August.
The council first suspended car park charges in April in response to the country entering coronavirus lockdown.
As measures slowly relaxed, fees were reintroduced at tourist parking areas along the coast, but amenity car parks across the district remained free.
The decision has been made to extend this in an attempt to encourage shoppers to return to town centres.
ELDC leader, councillor Craig Leyland, said: “The recent lowering of the COVID-19 alert level means we will likely see continued easing of the lockdown measures that have been in place over the last three months.
“As more of our shops and town centre businesses begin the process of reopening we want to be sure that our residents feel confident and safe to support those businesses at this vitally important time.”