In the coming years, Latvia plans a gradual increase in excise taxes on alcohol. As explained by the Ministry of Finance, the goal is to increase budget revenues while simultaneously reducing the consumption of harmful products. This was reported by TV3.
What Changes and When
According to the Ministry of Finance, the increase in excise taxes will be spread over several years and will affect different categories of beverages. Key benchmarks:
Strong Alcohol (0.5 L):
- In 2026, the average price increase will be approximately €0.27;
- By 2028, around €0.50.
Beer (0.5 L):
- Expected price increase is approximately €0.03 per bottle;
- From March 1, 2028, the excise tax on beer will increase by an average of another 10%.
Industry Arguments
Business representatives warn that the sector has already felt the impact of trading hour restrictions, and the increase in excise taxes adds to the uncertainty. Small and independent breweries are considered particularly vulnerable.
Reinis Plavins, Chairman of the Latvian Association of Independent Brewers, notes that in several EU countries, the excise tax on beer is lower than in Latvia:
"Right now I am on a business trip in Romania, where the excise tax on beer is five times lower than in Latvia, as well as in Germany and Belgium - there it is significantly lower. The new rates did not surprise anyone: since regaining independence, the excise tax on beer has increased 15 times, and on strong alcohol - 3.5 times. If I believed in conspiracy theories, I would say that after taking the oath, deputies enter a dark room where the oath is taken by producers of strong drinks," he jokes.
What This Means for Consumers
The price increase will be gradual and, in most cases, moderate for beer (a few cents per bottle) and more noticeable for strong drinks (tens of cents for 0.5 L). The final price depends on the manufacturer, alcohol content, retail markups, and promotions. The business is waiting for clarity on the schedule and scope of future changes: predictability of rates is important for planning.
The government is betting on fiscal effects and reduced consumption, while the industry is concerned about risks for small brewing and demand. Consumers should expect gradual price increases, especially in the strong alcohol segment, and keep an eye on promotions and alternatives within the category. For the market, a transparent excise tax schedule until 2028 remains a key factor.
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