The Latvian health ministry is coming up with a suggestion to promptly increase excise tax rates for tobacco products to LVL 10 (Euro 14.3) per 1,000 cigarettes and 25 per cent of the retail price, from the current rates of LVL 7.6 (Euro 11) and 14.8 per cent correspondingly.

In spring 2007, the ministry is also expected to suggest a strategy of excise tax policy for the years to come. In case that the latest proposition is supported in parliament, which looks very likely, cigarette retail prices will rocket by 20 to 25 per cent, tobacco companies operating in Latvia warn. (vt)