Latvia’s alcohol market will be affected by changes in legislative regulations and import prices in neighboring countries next year, spokesperson of Liviko alcoholic beverages importer and wholesale trade company and Latvian Alcohol Industry Association Gennady Klepikov reported.
According to him, it is hard to predict next year’s prices of imported products in Latvia, as much depends on the economic situation abroad and abilities of other producers. Latvia’s alcohol market will also be affected by legislative changes in Estonia and Lithuania.
“We know Estonia plans to increase excise tax next February. We don’t know how much excise tax could grow in Lithuania. Lithuania now has a new government, a new parliament composition. It intends to actively influence alcohol industry”, Klepikov said, adding that Latvian alcohol producers might be forced to reduce exports to Lithuania. At the same time, alcohol product sales may yet increase in the Latvian-Lithuania border region.
At the same time, he believes that excise tax increase in Lithuania and Estonia could be a sign to Latvian government to review its established excise tax rate for alcohol, which could negatively impact producers.
“We need to understand that we stand between two markets and what happens there could also impact us”, LANA representative said. (LETA/Business World Magazine)