Lawmakers reject proposal to introduce tax on luxury goods

RIGA - A majority of Saeima members at Thursday's parliament sitting rejected opposition MP Viktorija Pleskane's (Latvia First) proposal to introduce a tax on luxury goods.

In her proposal for Latvia's 2025 draft budget, the lawmaker suggested tasking the government to draft a bill on the taxation of luxury goods. The government would also be obliged to provide a definition of luxury goods and rules regulating the application of the new tax intended to increase budget revenue.

According to Pleskane's estimates, at least EUR 14 million could be collected in additional tax revenue thanks to such a tax. Besides, the new tax would also help ensure social justice, the MP argued, adding that similar taxes on luxury goods are known to exist in Norway and other countries.

As reported, the Saeima today continues the last reading of Latvia's 2025 budget bill.