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Saturday, 20.04.2024, 12:14
Higher excise tax rates on alcohol, fuel proposed in Latvia
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Several such initiatives have been proposed by Unity, and they are yet to be discussed by the coalition. A number of proposals will depend on both the opinion of the respective ministries and talks with the involved parties.
It is said that the excise tax rate on alcohol could be increased gradually, which would mean a "not so big" tax increase. As for fuel, increasing the excise tax rate on gasoline and autogas is more likely than the excise tax on diesel fuel, due to the low oil prices at the moment. If agreement was reached regarding the excise tax rate on alcohol and fuel, the budget revenue would collect an extra EUR 10 million to EUR 15 million.
Another proposal concerns changing the system of social contributions for high-income earners – imposing a tax on that part of salaries that is currently non-taxable after the social contributions are paid. It is said that such a system would bring in additional EUR 40 million in the budget, however, it needs to be analyzed whether the system would be in line with the Constitution.
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