Finance Ministry has plans to raise excise tax on alcoholic beverages and cigarettes even more rapidly, according to proposals prepared by the ministry to the Excise Tax Law. These proposals have been submitted to the Saeima for approval in the final reading.
FM explains that it is necessary because there are plans to apply greater corporate income tax discounts for donations. The point of the excise tax proposal is more rapid raising of tax rates for alcoholic beverages, beer and cigarettes. This means 2018 will see rates originally intended to be introduced in 2019 and rates from 2020 will be introduced in 2019.
The ministry proposes establishing excise tax for cigarettes at EUR 78.1 per 1,000 cigarettes instead of EUR 70.7 starting from July 1, 2018.
Excise tax for beer is planned to be raised to EUR 6.8 for every absolute alcohol percentage point (EUR 5.6 originally).
As previously reported, Saeima conceptually approved amendments to the Law on Excise Tax in the first reading, thereby providing a more rapid climb of excise tax for fuel, cigarettes and alcohol.
Excise tax rate for cigarettes was originally planned to be increased by 5.5% – from EUR 67 per 1,000 cigarettes to EUR 70.7 starting from July 1, 2018.
Excise tax for wine was initially planned to be raised by 18% – from EUR 78 per 100 liters to EUR 92. Excise tax for beer would grow by 24% – from the current EUR 5.4 per absolute alcohol percentage point to EUR 5.6. (BNN/Business World Magazine)