On Thursday, the Saeima passed amendments to the Excise Duty Law, providing for an increase in excise duties on alcohol, tobacco, and sweetened beverages.
The draft law is linked to the draft state budget for 2026 and the budgetary framework for the next three years.
The amendments foresee a gradual increase in excise duties on several categories of goods, including alcoholic beverages, tobacco products, non-alcoholic drinks, and energy drinks, starting next year. After two years, the reduced rate for petroleum products used in free ports and special economic zones will be phased out.
From March 15 next year, excise duty on spirits will increase, while from March 1, 2028, excise duty on all alcoholic beverages will rise. This will result in an end price increase of €0.51 per bottle of spirits, €0.15 – €0.30 per bottle of wine, and €0.03 per bottle of beer.
Next year and from 2027, a faster increase is planned for all tobacco products – 5% higher than previously projected. Compared to this year’s prices, the cost of a pack of cigarettes will rise by €2.20 to €7.50 from 2028. For chewing tobacco, the increase is expected to be €0.35 per pack, and for a 2-milliliter pack of e-liquid, €0.15.
From 2028, the tax will also increase on sweetened beverages, and energy drinks will be subject to a separate excise duty rate.
It is also planned that, starting in 2028, non-alcoholic carbonated beverages prepared on the premises of catering establishments will be subject to excise duty. Until now, both non-carbonated and carbonated beverages prepared for immediate consumption at the point of sale were exempt from excise duty.
Petroleum products will also be affected by the excise duty changes. The reduced rate for petroleum products used in free ports and special economic zones will be abolished from 2028. To promote the use of renewable and more environmentally friendly energy in machinery and equipment, including electricity, the general rate of excise duty will be applied instead of the current reduced rate. The current excise duty relief on fuel will remain available to businesses until the end of 2027.
Source: BNS
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