Latvia to Raise Tobacco Taxes Gradually for 3 Years

The Latvian government has amended its Excise Tax Law to include a gradual increase in excise taxes on e-liquids and other next-generation tobacco products.

E-liquids other vaping products will see their excise tax rates increase by an average of 21 percent every year in 2024, 2025 and 2026. Other tobacco “substitute products” which include nicotine pouches, will rise by 10 percent.

The amendments will negatively impact Latvia’s efforts to curb smoking by making options to switch less attractive, according to Alberto Gómez Hernández, Community Manager of the World Vapers’ Alliance.

“Increasing the taxation of safer nicotine products will discourage smokers from switching and push users back to smoking,” Gómez Hernández said in a press release. “The international evidence has shown that increasing taxation of e-cigarettes and e-liquids has always led to an increase in smoking, particularly among young adults and low-income groups.

“Latvia should follow the steps of countries that are successfully reducing smoking rates by encouraging smokers to switch, such as the United Kingdom and Sweden, instead of making it more costly for them.”

The bill will also increase the excise tax rates of heated tobacco products and combustible cigarettes by 5 percent and 5.6 percent every year, respectively.