Budget, Energy, Financial Services, Latvia, Legislation, Taxation, Transport

International Internet Magazine. Baltic States news & analytics Wednesday, 22.01.2025, 18:03

Statoil: share of illegal fuel in Latvia – up to 40%

Alla Petrova, BC, Riga, 05.04.2011.Print version
The market share of illegal fuel in Latvia is close to 40% and causes tens of millions of lats losses to the state budget. The private sector is barely noticeable at Latvija Statoil filling stations at the Latvian border on weekends, as the company's CEO, Sandis Steins, said in an interview with the business information portal Nozare.lv.

If excise tax on fuel is increased, then it is also necessary to combat the shadow economy. Several street dealers are arrested now and then, but it is difficult to say whether these measures are sufficient to liquidate the gray market, explains Steins.

 

Currently the government has listed 60 items in its plan to combat shadow economy. However, there is no information about its implementation and the results, Steins points out.

 

"All I can say is that the private sector is barely noticeable at our borderland stations on weekends. We have good business clients that buy legal fuel and pay taxes. Our business activities continue, however, our convenience stores have become museums with dust settling on excised goods," points out Steins.

 

Latvija Statoil turnover in 2009 reduced 24% year-on-year to LVL 260.465 million, whereas profit after tax dropped 44% to LVL 1.2 million, writes LETA.

 





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