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Tuesday 17.01.2017 | Name days: Tenis, Dravis
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Volume of illegal alcohol in Latvia reaches 30%

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Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUThe volume of illegal alcohol present on Latvia’s market reaches 30%. This does not only put at risk the health of residents but also significantly hurts the state budget, notes Latvian alcohol industry association.

Results of a survey by LANA and eSample shows that every tenth respondent has at least once bought illegal alcohol sold off-hands. 84% of respondents said they know very well where it is possible to buy illegal alcohol. Although this information proves residents intentionally put their health at risk, Genadiy Klepikov, head of Latvian alcohol industry association, notes that the majority of respondents don’t even know that they’re buying alcohol of unknown origin.

Latvian State Police report that active measures are taken in order to combat illegal alcohol trade. Unfortunately, only 3% of respondents have said they would inform the police if they knew any locations where illegal alcohol is produced.

If production, trade and contraband of illegal alcohol is not stopped, the recently adopted increase of excise tax will not bring the expected contribution to the state budget.

«The volume of illegal alcohol on Latvia’s market currently reaches 30%. Stopping as little as one-third of the illegal alcohol market would yield the state budget EUR 17.6 million in excise tax revenue and EUR 3.7 million in VAT. This problem mainly plagues the strong alcohol industry. This is because prices of strong alcohol are affected the most by the excise tax. The price of 0.5 l of 40 degrees vodka includes EUR 2.72 excise tax. This profit is enough to sustain production of illegal alcohol,» – notes Klepikov.

Ref: 102.109.109.3634


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  1. ikke48 says:

    it does NOT include EUR 2.72 of VAT (that would make 0.5 l cost EUR 12.95 excl. VAT) but EUR 2.72 VAT and excise taxes – big difference

    Thumb up 0 Thumb down 0

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