The Latvian government has approved annual excise tax increases on e-liquids and tobacco substitutes through 2026. This fiscal policy, aimed at raising state revenue, will see e-liquid taxes grow by an average of 21% annually, raising concerns among public health advocates.
Under the approved amendments to the Excise Tax Law, the tax hikes on vaping products will take effect in phases on March 1, 2024, January 1, 2025, and January 1, 2026. While e-liquid taxes will jump by 21% annually, taxes on heated-tobacco products will rise by 5% and nicotine pouches by 10% each year. In comparison, traditional combustible cigarette taxes will increase by 5.6% annually.
Tobacco harm reduction advocates warn that narrowing the tax gap between combustible cigarettes and reduced-risk alternatives will harm public health. Alberto Gomez Hernandez, community manager of the World Vapers’ Alliance, stated: “Increasing the taxation of safer nicotine products will discourage smokers from switching and push users back to smoking.”
Hernandez urged Latvia to look at countries like the UK and Sweden, which have reduced smoking rates by keeping safer alternatives affordable, rather than making them cost-prohibitive for low-income groups and young adults.
- Read more: Changes in taxation and finances from 2025
