Latvia Plans Tax Increase on Electronic Cigarettes, Beginning in 2027

On September 19th, the Latvian government approved significant tax reforms that will raise excise duties on electronic cigarettes and related products starting from 2027. This move aims to harmonize Latvia’s tax rates with neighboring Baltic states and contribute to the European Union’s climate neutrality goals.

Excise Duty Hikes on E-Cigarette Products

Beginning in 2027, the excise duty on electronic cigarette refill liquids will increase by €0.10 for a 2 ml package and €0.48 for a 10 ml package. Taxes on tobacco substitutes, such as nicotine pads (14 g packaging), will rise by €0.28. These adjustments are part of a broader strategy to discourage tobacco use and promote public health.

Impact on Consumers

Consumers can expect price increases across various tobacco and e-cigarette products:

Electronic Cigarette Refill Liquids:
- 2 ml package: Price increase of €0.10
- 10 ml package: Price increase of €0.48
Nicotine Pads (14 g packaging): Price increase of €0.28
Heated Tobacco (5.3 grams): Price increase of €0.19
Smoking Tobacco (40 grams): Price increase of €0.62
Cigars and Cigarillos (10 pieces): Price increase of €0.29

Aligning with Baltic States

By increasing excise duties, Latvia aims to align its tobacco taxation with that of Estonia and Lithuania. This harmonization seeks to reduce cross-border price discrepancies and limit the influx of cheaper tobacco products from neighboring countries.

Supporting Fiscal Goals

The increased revenue from these excise duties will help offset the state’s budget deficit caused by reductions in labour taxes and other financial adjustments. The Ministry of Finance anticipates that compensatory measures, including the excise duty hikes, will generate an additional €103 million in revenue.

Commitment to EU Climate Goals

These tax reforms also support the European Union’s climate neutrality objectives. By making tobacco and e-cigarette products more expensive, the government encourages consumers to reduce usage, thereby contributing to better public health and environmental outcomes.

News source: Latvian government goes with proposed changes to labour taxes

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Matthew Ma

Marketing at Ecigator

With over a decade of experience in the e-cigarette industry, Matthew Ma is a seasoned expert in both the manufacturing and usage aspects of vaping products. His extensive background has provided him with a deep understanding of the intricacies and evolving dynamics of e-cigarettes.