Foodstuff, Latvia, Legislation, Markets and Companies, Taxation

She explains that imposing higher taxes in the food industry, which is already suffering from Russia's sanctions and struggling to penetrate foreign markets, means "burying the industry even more."

"We, of course, support the Health Ministry's concerns about the society's health, however, there has to be some sort of understanding about the current state economy as a whole, as well as how increasing several taxes could affect the leading industry in Latvia, which is currently going through tough times. The ministry's officials have once again calculated the theoretical tax volume they might collect, but have forgotten to consider the losses and the potential tax evasion. It is not clear what is the Health Ministry's justification for questioning the government's competence, as the Cabinet of Ministers declined similar amendments to the excise tax system already in 2013, calling them inadequate and unfeasible," said Sure.

According to the Latvian Federation of Food Companies, increased excise taxes on specific food product groups and non-alcoholic beverages would cause one company to suffer annual losses in the amount of tens of thousands or even half a million euros. Such changes would lead to increased prices of specific produce.