ECO-Taxes in Latvia

Janis BrizgaPasaules dabas fonds in association with WWF

Introduction

Political situation and position concerning eco-taxes and EFR No political discussion on EFR, but ideas to decrease income tax.

Environmental taxes in Latvia:1. Natural resource tax (0,11% of GDP):

Natural resources: gravel, peat, water, etc; Waste disposal; Packaging; emissions: CO2, CO, SO2, NOx, heavy metals; Water pollution Harmful products: oils, batteries, ozone depleting products, tires, IT and

electronic products Cars (0,06% of GDP); Radioactive compounds.

2. Excise duty for energy products (1,93% of GDP)3. Vehicle registration fees (age of the car) + annual duty on

cars (weight of the car).

Share of energy products

Product Share Household

y 2000 y 2003 y 2000

Gas 29,66% 32,47% 12,10%

Oil 33,69% 28,75% 6%

Renewable (firewood, peat, wind, small HPP) 24,09% 28,17% 60,50%

Electricity (HPP, TEP) 10,58% 9,24% 19,40%

Coal 1,97% 1,37% 2,40%

Energy intensity

Electricity

Primary energy resources utilized in the production of electricity, 2002

Proportion of renewable energy resources in the production of electricity 2004

Large HEP95,7%

Biogas

Wind energy1,5%

Small HEP

Others2,3%

Energy taxes

Energy taxes by sector from 2007from 2008

from 2011

Unleaded petrol 28,7 32,3 35,9

Leaded petrol (cent per litre ) 42,1

Diesel 24,5 27,4 30,2

Liquefied petroleum gas 12,5

Natural gas 0

Light heating oil 2,1

Heavy fuel oil for Heating 1,5

Gas used for heating purposes /

Coal and coke (b / p) 7,5 / 15 15 / 30

Electricity (per MWh) 0,00 25 / 50 50 / 100

Further Commentary / Analysis

We have minimal rates, but also low income Transition periods:

Petrol – 2011 Gas oil – 2013 Heavy fuel – 2010 Electricity, coal, coke – 2007

Reductions: heating, ships, aircrafts, agriculture

Government is planning to subsidize bio-fuel production