Banks, Financial Services, Latvia, Legislation, Markets and Companies, Taxation, Transport

The tax rates will increase on July 1, 2011, and they are one of the measures to increment budget revenue this year, informs LETA.

The new tax rates are meant to generate an additional LVL 14.53 million in revenue this year, and LVL 37.56 million in 2012.

The amendments provide for increasing excise tax on liquor from LVL 890 to LVL 940 per 100 liters of pure alcohol, to make the tax rate equal with those of Estonia and Lithuania.

The amendments also stipulate increasing excise tax on gasoline from LVL 269 to LVL 289 per 1,000 liters, which will also make the tax closer to the tax rates of Lithuania and Estonia.

Excise tax on cigarettes and smoking tobacco will also be gradually increased so as to meet the European Union's minimum level by 2018. According to the Finance Ministry's estimates, this will net an extra LVL 3,608,500 in the budget this year, and LVL 8,660,300 in 2012 and 2013 each.

Also, excise tax on natural gas used for heating will be reduced from LVL 15.6 to LVL 12 per 1,000 cubic meters after July 1.

The bill also states that the Cabinet of Ministers will have to set a maximum diesel fuel amount in agriculture and farming that is exempt from excise tax.