About the proposal to introduce a new economic security tax

A new proposal has been submitted for review to the Saeima’s Budget and Finance Committee, which foresees the introduction of a 30% economic security tax. The tax is proposed to apply to several categories of goods originating from high-risk countries or acquired through risky supply chains. 

Ingūna Ābele, Lead of Tax Practice at WALLESS, provided a comment in an article published by Dienas Bizness, emphasizing that the draft law is very “green” and has a noble aim – to limit imports from Russia – but at the same time overlaps with existing sanctions and other regulatory frameworks.

She also highlights that such regulation may create additional risks for businesses, including the possibility of formally altering the origin of goods, which would in turn affect competitiveness and price levels.

More detailed information is available in Dienas Bizness magazine.