Reduction of excise tax for fuel should be evaluated, says Latvian Minister of Economics Ilze Indriksone.
“In March, when the first major price rise was observed, we proposed reducing excise tax to the minimal rate in the European Union. It is important to reduce the price to stop it from going up or to reduce the rate at which it increases if the price continues going up. We intend to discuss this topic again and listen to the arguments why other coalition partners do not find the topic important,” said Indriksone.
She said this task was important, because fuel was becoming more expensive, and the effect was felt across all sectors – not just for households but for the competitiveness of businesses as well.
“Many European countries have already reduced their excise tax. There are other tools as well, but I believe reduction of the excise tax would provide the fastest result and not result in long-term consequences, because it will be possible to increase the tax rate afterwards. The argument that it will not reduce the price is unjustified, because in a time when prices are on a rise anyway, it could at least help reduce the price rise. Every measure that improve our competitiveness is worth it, because our businessmen compete with all European countries on the market,” said the minister.
On June 14, to promote a reduction of fuel prices, Latvian government decided that biofuel mixing would not be mandatory starting from July 1 until the end of 2023. During this period of time retailers and wholesale traders will be able to choose if they want to use biofuel mixing.
The opposition’s proposals for changes to the taxes, including excise tax reduction for petrol products was rejected by the Saeima on June 16. (BNN/Business World Magazine)
