The Latvian government is considering a windfall tax on fuel retailers, LETA reports. Under the proposal, fuel retailers would have to pay a solidarity tax if their actual retail price was more than 3% higher than the objectively calculated indicative retail price. Earlier, the government lowered the excise duty on diesel fuel temporarily until 30 June 2026, LSM reported. However, Economy Minister Viktors Valainis said that the diesel tax cut had failed to reduce retail prices, arguing that a windfall tax would motivate fuel retailers to reduce prices faster. High fuel prices created “very significant pressure” on the economy, the minister pointed out. Meanwhile, Ieva Ligere, executive director of the Latvian Fuel Traders Association (LDTA), said that fuel traders were fundamentally opposed to the proposed windfall tax, which they regarded as price regulation that contradicted free market principles. She insisted that the tax was a “political initiative” ahead of the upcoming parliamentary elections.
Headlines