Excise tax on energy and sugary drinks to rise next year in Latvia

The government has decided to increase the tax rate on soft drinks with a sugar content of more than 8 grams per 100 millilitres, as well as on alcoholic sub-products, LSM.lv reports. 

The proposal is still to be decided by the Saeima in its second and final reading when it considers the draft budget for 2025.

Currently, the excise duty rate on soft drinks with a sugar content of up to 8 g/ml is €7.4 per 100 litres, and €17.5 per 100 litres for drinks with higher sugar content, as well as for energy drinks.

The law foresees an increase in excise duty on higher sugar drinks and energy drinks to €21 per 100 litres from 2026.

On Tuesday, 12 November, the government approved an alternative proposal to maintain the current excise duty on soft drinks with a sugar content of up to 8 g/100 ml. At the same time, the government agreed that the higher excise duty on drinks with a sugar content of 8 g/100ml and above and on energy drinks will come into force one year earlier than planned - already in 2025, at €21 per 100 liters.

The government also decided to raise excise duties on intermediate alcoholic beverages (per 100 liters) more sharply.

The government also heard objections from farmers' representatives to the proposal to raise excise duties on fuel and gas. Farmers put forward their own proposal, which they said would have a fiscally neutral impact on the state budget. The Ministry of Agriculture will come back to the government with an information report on this issue.

"We have not had time to prepare and discuss what the data is. It is not that anyone objects, but we are not sure that this will not have an impact on the budget," said Prime Minister Evika Siliņa (New Unity).

She added that there would be further discussions on the excise duty changes in the Saeima when the budget is considered in its final reading.

Seen a mistake?

Select text and press Ctrl+Enter to send a suggested correction to the editor

Select text and press Report a mistake to send a suggested correction to the editor

Related articles

More

Most important