The Ministry of Finance reported a failure to meet the tax collection plan: do Latvians not want or cannot pay? 0 10

It should be noted that the current data do not yet fully reflect the impact of recent geopolitical events, warns the Ministry of Finance, which oversees Latvian tax authorities.

According to the data from the State Revenue Service (SRS), the refund of overpaid personal income tax (PIT) in the first quarter amounted to 146.3 million euros — this is less than in the same period of 2025, but higher than the planned level. As a result, PIT revenues amounted to 91.4% of the plan.

Revenues from corporate income tax (CIT) in the first quarter decreased by 24.5 million euros, or 13.8%. This is related to taxpayer behavior at the end of 2024, when companies actively distributed profits in the form of dividends to individuals, as from 2025, an additional CIT rate of 3% applies to incomes exceeding 200,000 euros.

Revenues from consumption taxes were higher than a year earlier. Income from value-added tax (VAT) of 981.2 million euros increased by 67.8 million euros, or 7.4%, achieving 100.8% of the plan. The largest contribution came from trade, and revenues in the energy and services sectors also increased.

Revenues from excise tax over the three months increased by 26.9 million euros, or 9.4%, reaching 312.7 million euros. The plan was fulfilled by 98%. The highest growth was observed in petroleum products, while revenues from alcohol and tobacco decreased. As of January 1, excise rates on fuel and tobacco products were increased, and as of March 1, on alcohol.

In response to the conflict surrounding Iran and the Middle East, a temporary measure was introduced from April 1 to June 30, 2026 — a reduction in excise tax on diesel fuel and marked diesel fuel for agriculture. According to the Ministry of Finance, the losses from the reduction in excise tax will be compensated by the increase in VAT revenues due to rising fuel prices.