< Back to Heated Tobacco Products Tax Gap Map
Tax Gap of Heated Tobacco Products in Latvia
In December 2015, the excise tax law (No. 367/Lp12) was amended to create a new tax category for heated tobacco, which went into effect in July 2016. Heated tobacco is defined as “industrially processed tobacco, which is prepared to distill steam which contains nicotine, without burning process.” From January 1st, 2016, and until January 1st, 2021, the excise tax on heated tobacco was the same as other tobacco products. The law on excise duty was amended on November 24th, 2020, to include a separate category for heated tobacco products (effective January 1st, 2021), and while the specific excise tax rate increased significantly compared to other tobacco products, it remains lower than that for cigarettes. Since January 1st, 2023, the tax on heated tobacco is EUR 218 per 1000 grams.
Latvia applies a mixed excise tax system with a minimum excise tax to cigarettes. As of May 2023, the specific excise is EUR 104 per 1000 cigarettes, the ad valorem rate is 15% of the retail sale price, and the minimum excise is EUR 135.9 per 1000 cigarettes.
Sources:
- Ministry of Finance of the Republic of Latvia: Excise Duty Rates for Tobacco Products, EUR
- Amendment to the Law “On Excise Tax” (No 367/Lp12), Dec 8, 2015
Last updated Sept. 1, 2023