Saeima approved amendments to the Law on Excise Duties, proposed by the KPV LV Saeima group, in the final reading today; the amendments provide for a slower increase of excise tax on alcoholic beverages.
According to the amendments, excise tax on alcoholic beverages will on the average increase by 5 percent in 2020 and 2021.
As a result, excise tax on liquor will be raised by EUR 0.38 per liter in 2020 and EUR 0.4 per liter in 2021, while the tax on wine will increase by EUR 0.06 in 2020 and as much in 2021. Excise tax on beer will increase by EUR 0.03 per liter.
Under the amendments, excise tax rate for intermediate products with alcohol content between 15 percent and 22 percent will increase from EUR 168 to EUR 176 per 100 liters, excise tax on liquor will increase from EUR 1,564 to EUR 1,642 per 100 liters as of March 1, and to EUR 1,724 as of 2021. Excise duty on will grow slightly faster than previously agreed – from EUR 7.4 to EUR 8.2 per 100 liters, not EUR 8.1 as Saeima originally agreed.