Energy, Latvia, Legislation, Taxation

International Internet Magazine. Baltic States news & analytics Wednesday, 22.05.2019, 22:11

Latvian tax system discriminates using domestic and renewable energy resources

Alla Petrova, BC, Riga, 14.04.2009.Print version
The tax policy for using domestic and renewable energy resources, introduced by the previous government in Latvia, is discriminatory and the parliament of Latvia should change it as soon as possible – such an opinion was expressed by the adviser to the European commissioner for energy and representative of the political union "" Juris Ozolins.

The hasty changes in tax policy, which were introduced at the end of the last year, had a significant impact on a number of sectors and resulted in an increase of costs, which affected nearly all households in Latvia, Ozolins points out.


"It is unacceptable and absurd that the reduced 10% value-added tax (VAT) rate applies to natural gas consumers, whereas the local fuel users have to pay 21 % VAT. Such a division of the tax rate makes us start thinking of the ''services'' given to tennis and hunting partners of persons working in the previous Ivars Godmanis (Latvia's First Party/Latvia's Way) government," the energy expert underlines.


Furthermore, the current tax policy gives additional stimulus to export timber for energy production rather than to sell it in the local market, which increases bills for the users of the domestic fuel.


The political group '" is one of parties running for the oncoming June 6 European Parliament elections, it aims to promote Latvia's accession to the European energy markets and introduction of measures to reduce effects of the climate change in Latvia.

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