Plastic Tax: Latvia

published on 14 October 2022

1. Introduction of plastic/environmental tax

Implementation of plastic tax

The natural resources tax (NRT) was introduced in 1991.

Form of Taxation

NRT is paid based on the amount (kg) of plastic source materials used by a taxpayer.

Legal basis

NRT Law regulates the NRT objects, taxpayers of the NRT, possible exemptions and tax rates applicable to various NRT objects.

2. Plastic/Environmental Tax scope and rates

Person liable to pay the tax

NRT is paid by:

Companies which have received special permits and licenses for extraction of various natural resources
The first person to sell goods that are harmful to the environment or goods in packaging in Latvia and:
- attaches packaging for its customers convenience or advertising design
- uses goods purchased in packaging in its business activities
- upon provision of a service, attaches packaging to the product and such packaging is then passed onto the recipient of the service
- uses coal, coke, and lignite for ensuring its economic activities
Sellers of single use tableware and plastic bags
Entities using radioactive substances that create radioactive waste as a result of their activities and the waste is held in the territory of Latvia
Entities in specific scenarios in relation to vehicles

The NRT is payable by Latvian and foreign companies, if applicable conditions are fulfilled.

Tax base

The NRT rates differ depending on the type of packaging and the NRT objects. For packaging and single use tableware the tax rates are as follows:

No.	Type of material of the packaging and disposable tableware	Rate (Euro) per 1 kg of material
1	Of glass source materials	0.44
2	Of plastic (polymer) source materials, except for bioplastic or polystyrene source materials	1.22
3	Of metal source materials	1.10
4	Of wood, paper and cardboard or other natural fibre and bioplastic source materials	0.24
5	Of polystyrene source materials	2.20

Product scope

Natural resources and also the collection of edible park snails (Helix pomatia L.) for further economic use
Use of the useful properties of subterranean depths by pumping natural gas into geological structures
Waste disposal at a waste landfill site, incineration of waste in an incineration or co-incineration plant, and emission of polluting substances into the environment
Goods harmful to the environment (e.g. large and small household equipment, IT equipment, tires, vending machines, light bulbs, medical devises, etc.)
Packaging of goods and products, the disposable tableware and accessories
Radioactive substances
Specific vehicles
Coal, coke, and lignite (brown coal)
Fireworks of Category F1, F2, F3, and F4

Time of taxation

NRT is reported on a quarterly basis or a yearly basis if the NRT liability is below 142.29 Euro.

Impacts and consequences (for entrepreneur and/or private individuals)

The aim of the NRT is to restrict pollution of the environment, as well as to reduce the manufacturing and sale of environment polluting materials. All polluting companies are required to pay NRT or conclude agreement with the waste recycling company. The tax rates provided by waste recycling company are more favorable.

Exemption/exclusion from taxation

Companies may be exempt from the NRT if they have concluded an agreement with a waste recycling company for the recycling of packaging and disposable tableware (except when made of plastics and laminates).

Sanctions for violations

Fines may be collected in a twofold amount of the unpaid NRT and late payment fees 0.05 per cent per each day may be applied.

Deadlines

NRT returns have to be submitted by the 20th date of the following month for the previous quarter.

EU Plastic Tax

No actions on that in Latvia currently.

Insights

EU Green Deal and Plastic Tax – an overview

Contact

Contact Person Picture

Jens-Christian Pastille

Attorney at Law (Germany, Latvia)

Partner

+371 6733 8125

Send inquiry