Alcohol, Latvia, Legislation, Markets and Companies, Taxation

The excise tax rate on alcohol started to rise already this year and the hike is expected to continue for the next three years. Initially, the annual tike hike was planned for April 1, but at the industry's request it was rescheduled for March 1 of each year.

The excise tax rate on 100 liters of beer will climb from EUR 3.8 to EUR 4.2 in 2016, to EUR 4.5 in 2017 and to EUR 4.8 in 2018. The tax rate on 100 liters of wine will grow from EUR 70 to EUR 74 next year. For intermediate products with alcohol content of up to 15%, the tax will increase from EUR 70 to EUR 74 and for products with higher alcohol content from EUR 110 to EUR 120.

The tax will not be raised for fermented beverages with alcohol content below 6%, but for stronger beverages it will be raised to EUR 74 per 100 liters.

In 2017, the excise tax rate on 100 liters of wine will go up to EUR 78 in 2017 and to EUR 82 in 2018. The tax rate on intermediate products with alcohol content up to 15% will be the same as that charged on wine, while for intermediate products with higher alcohol content the tax will go up to EUR 130 in 2017 and EUR 135 in 2018. For stronger fermented beverages, the excise tax rate will be raised to EUR 78 per 100 liters in 2017 and EUR 82 in 2018, while excise tax on spirits and other alcoholic beverages will be increased to EUR 1,450 in 2017 and 1,500 in 2018.

Meanwhile, Latvia's small breweries will be charged 50% of the tax rate for the first 10,000 hectoliters of beer produced in a calendar year.