RIGA - Excise tax on diesel fuel could be increased in order to secure financing for road maintenance, according to Transport Minister Talis Linkaits (New Conservative Party).
"I believe that one of the sources of financing could be higher excise tax on diesel fuel. Taking into account that we are moving toward environment-friendlier public transport and transport in general in Latvia, such a decision would, on the one hand, make a lot of sense and, on the other hand, also help secure additional funds for road maintenance," the transport minister said in an interview with Latvian Television on Monday.
The matter will be discussed together with the pending reforms to Latvia's tax system, said Linkaits.
Excise tax on diesel fuel in Latvia has been EUR 372 per 1,000 liters from January 1, 2018, while in 2020 the tax is to be increased to EUR 414, according to the State Revenue Service.