Latvia to Raise Liquid Tax by 21 Percent Yearly

Latvia will increase excise taxes on e-liquids by an average of 21 percent annually until 2026. The excise tax rates on heated-tobacco products and combustible cigarettes are set to increase by 5 percent and 5.6 percent every year, respectively. Meanwhile, the tax on other “tobacco substitute” products, including nicotine pouches, will rise by 10 percent. Tobacco harm reduction advocates warned that the measure would negatively impact Latvia’s efforts to curb smoking by making safer alternatives less attractive.