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International Internet Magazine. Baltic States news & analytics Friday, 14.08.2020, 11:12

Saeima in Latvia approves steeper hike in excise tax on alcohol, cigarettes and gasoline

BC, Riga, 28.07.2017.Print version
Saeima in Latvia on July 27th passed in the final reading amendments to the Excise Tax Law, which stipulate steeper increase in excise taxes on beer, cigarettes, and gasoline, writes LETA.

Starting March 1, 2018 the excise tax on beer will be EUR 6.8 per percentage of absolute alcohol by volume but no less than EUR 12.5 per 100 liters of beer. The tax will be further increased to EUR 7.4 in 2019 and EUR 8.1 in 2020.

 

Excise tax on other alcoholic beverages will be EUR 1,670 per percentage of absolute alcohol. The tax will be raised to EUR 1,840 in 2019 and EUR 2,025 in 2020.

 

According to the amendments, starting July 1, 2018 the excise tax rate on cigarettes will be set at EUR 74.6 per 1,000 cigarettes instead of the original proposal to raise the tax to EUR 70.7 per 1,000 cigarettes.

 

Excise tax on unleaded gasoline will be increased to EUR 476 per 1,000 liters in 2018. The tax rate will remain unchanged in 2019, but it will be further increased to EUR 509 in 2020.

 

Excise tax on diesel fuel will be raised to EUR 372 per 1,000 liters next year and to EUR 414 per 1,000 liters in 2020.

 

As a result of higher excise taxes, the price of fuel will increase EUR 0.04 to EUR 0.05 per liter next year, one beer bottle will cost EUR 0.07 more, while the price of one cigarette pack will increase EUR 0.24, according to the Finance Ministry. Prices of other alcoholic beverages will also increase.






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