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LATVIA: Large cities do not support initiative to increase taxes on alcohol and fuel

Next year’s budget gap is EUR 460 million, which in planned to be compensated by raising taxes for alcohol and fuel. Large Latvian municipalities do not support the government’s proposed tax reform, as reported by Nekā personīga.

BNN had previously reported that the lack of revenue from the tax reform would be compensated by raising excise taxes and fuel, cigarettes and alcohol, according to guidelines of Finance Ministry’s tax reform.

«Border regions will not become a place from which everyone will transport fuel that is allegedly cheaper. Everything is being coordinated with our Lithuanian colleagues. This is why in relation to alcohol and cigarettes my Lithuanian colleague had contacted me at the beginning of the year. My answer was – I don’t know. We will be able to balance out increases in any case,» Kucinskis said with certainty.

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