Tax regulation mechanism

Updated: 02.03.2017

Author: Ilze Upatniece

The Law on Excise Duties obliges companies processing, holding, receiving or dispatching mineral oil products to pay excise tax (§ 5 Law on Excise Duties). This amount is reduced if the fuel is blended with biofuels (§ 14 Law on Excise Duties).

Eligible technologies

Only biofuels are tax-deductible.

Biofuels

Eligible

Amount

The amount of tax to be paid is reduced if the taxed energy product - diesel or petrol - is mixed with biofuels. Tax bands for 2017: Diesel fuel, substitute products and components thereof:

  • pure: € 341 per 1000 litres
  • blend of 70 - 85% biofuels: €131 per 1000 litres
  • pure biodiesel: €0 per 1000 litres
  • blend with biodiesel for use in the agriculture: €50 per 1000 litres
Unleaded petrol, substitute products and components thereof:
  • pure: € 436 per 1000 litres
  • blend of 70 - 85% biofuels: €131 per 1000 litres (§ 14 par. 1.1., 1.4., 3.1., 3.2., 4.1., 4.2. Law on Excise Duties).

Addressees

The Law on Excise Duties obliges companies processing, holding, receiving or dispatching mineral oil products to pay excise tax (§ 5 Law on Excise Duties).

Procedure

Process flow

The obliged companies must declare the amount of taxable energy products on a monthly basis (§ 23 Law on Excise Duties),

Competent authority

State Revenue Service (§ 23, § 24 Law on Excise Duties)

Distribution of costs

State

The costs of tax relief are borne by the state.

Latvia

Further information

Basic information on legal sources