Latvia to raise tobacco excise taxes annually from 2024 under a three-year plan

Starting in 2024, Latvia will increase excise taxes on tobacco, alcohol, and other consumer goods annually to raise more budget revenue and ensure public services. Cigarette taxes are expected to rise by 5.6% each year, leading to an increase in tobacco product prices.

According to bb.lv on September 27, starting in 2024, the excise tax rates on tobacco products, alcoholic beverages, e-cigarettes and their components, e-cigarette e-liquids, and certain oil products specifically for special economic zones and free port usage will increase annually.  

The goal of increasing the excise tax is to raise more government budget revenue to better ensure and develop various public services, including health investment, ticket reductions, internal and external security, the education system, and to minimize the retail price difference between alternative products to reduce the impact of consumption on public health and enhance the implementation of the national budget.  

According to reports, starting March 1, 2024, the excise tax on cigarettes, cigars, tobacco (fine-cut tobacco and other types of tobacco), tobacco leaves, heated tobacco, e-cigarette e-liquids, and tobacco alternatives will increase annually for three years. The tax on these products will start to be collected from January 1 in 2025 and 2026.  

The government plans to raise the annual excise tax on cigarettes by an average of 5.6%, which means the price of a pack of cigarettes will increase by €0.14-0.2. Currently, the tobacco excise tax for 2023 is approximately €0.14 per gram, €0.02 for cigars and cigarillos, €0.09 for smoking tobacco and tobacco leaves, and €0.22 for heated tobacco.