Under the system, beverage prices would include an additional fee which would be returned when the packaging is deposited.
The amendments to Packaging law have been discussed for years, but this is the first major step taken in parliament.
Latvia's cabinet has been tasked to come up with an introduction scheme. It is planned that the deposit scheme will start working in 2020 for plastic and glass bottles, as well as tin cans.
The news comes as a part of a number of sweeping law changes across the EU and on a national level.
Single-use plastic items such as plates, cutlery, straws, balloon sticks or cotton buds, will be banned in the EU under plans adopted on Wednesday.
These products will be banned from the EU market from 2021, under draft plans approved by the European Parliament.
Also on October 25 the Latvian parliament banned stores from supplying single-use plastic bags for free.