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Culture to be funded from excise tax

Latvia's chief culture-funding institution, the State Culture Capital Foundation, will be funded from part of the taxes levied on tobacco, alcohol and gambling starting 2022, the government ruled June 12. 

The cabinet told the press that the foundation will receive 3% from the tax levied on alcohol, 2% from tobacco, 1.37% from lotteries and 2.21% from gambling. A similar scheme is operational in Lithuania and Estonia. 

Up until 2021, the current funding rules apply, i.e. culture will be funded according to the country's budget capabiltiies. 

The cabinet accepted Culture Ministry suggestions for introducing the new funding model, which will allow the Culture Capital Foundation sponsor three runs of projects each year, grant 10 to 20 life-long stipends and help promote involving young people into culture, supporting creativity and people working in culture, as well as support culture projects across Latvia's regions. 

The Culture Ministry still has to come up with amendments to the law governing the way the institution works. 

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