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Saeima committee fails to reach agreement on excise tax on soft drinks
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    News

    Saeima committee fails to reach agreement on excise tax on soft drinks

    RIGA, June 11 (LETA) - Saeima Budget and Finance Committee today had a lively discussion about a proposal to increase excise duty on sweetened non-alcoholic beverages, but failed to endorse the amendments before they are reviewed by Saeima in the final reading.

    As reported, under the draft legislation, for soft drinks with sugar content of up to 5 grams per 100 milliliters the exercise tax rate will be EUR 7.4 per 100 liters, for soft drinks with sugar content of 5 to 8 grams per 100 milliliters the tax rate will be EUR 10 per 100 liters and for non-alcoholic beverages with sugar content exceeding 8 grams per 100 milliliters the tax rate will be EUR 30 per 100 liters. The new tax rates, proposed by three MPs of For Development/For, were to come into effect on June 1, 2020.

    However, the three MPs - Andris Skride, Ilmars Duritis and Inese Voika - today proposed different tax rates: EUR 7.4 per 100 liters for soft drinks with sugar content of up to 8 grams per 100 milliliters, and EUR 20 for non-alcoholic beverages with sugar content of more than 8 grams per 100 milliliters. They also proposed that the new tax rates come into force a year later.

    In the meantime, industry representatives said that no compromise had been agreed on, and called for further discussions about the proposed tax rates.

    The MPs believe that introducing a tax on sweetened non-alcoholic beverages will reduce consumption of such beverages, as well as increase tax revenue in the state budget.

    The committee's chairman Martins Bondars (For Development/For) said that the committee made no decision today, and that discussions about the proposal would resume at the end of August or the beginning of September.

    • Published: 11.06.2019 15:47
    • LETA
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