Latvia's Coffee Excise Tax: How Much Cheaper Coffee Could Become if It Were Scrapped
Latvia is one of the few EU countries that levies an excise tax on coffee. In theory, abolishing it could cut a 1 kg pack's price by about €1.72, but a price drop would not be guaranteed.
Latvia is one of the few European Union countries that taxes coffee with an excise duty, and this is one reason coffee in shops is often cheaper in neighbouring Lithuania and Estonia. Data from the State Revenue Service (VID) and the history of the tax show what it brings the state budget and how scrapping it might affect prices.
The tax rates
The excise applies to roasted and unroasted coffee, as well as certain coffee extracts, concentrates and coffee-based products. The current rate is €142.29 per 100 kilograms, or roughly €1.42 per kilogram.
The tax was introduced on 1 May 2004 to increase state budget revenue, initially at 50 cents per kilogram. In 2009 it was doubled to one lat per kilogram, and when Latvia adopted the euro in 2014 the rate was converted to €1.42. A 2012 assessment of the tax concluded that it only slightly affects coffee prices and consumption and achieves its goal of generating budget revenue. In 2023, a petition to abolish the tax was run on the manabalss.lv platform, but it gathered only half the signatures needed to move forward.
Consumption and revenue
Coffee consumption in Latvia remains stable. In the first half of 2024, about 3.05 million kilograms were released for consumption, and volumes in the first halves of 2025 and 2026 were similar. The calculated excise was €4.339 million in the first six months of 2025 and €4.343 million in the same period of 2026. The VID stresses that these are calculated amounts, not necessarily money actually received, and that the data come from taxpayers' declarations and exclude excise calculated at customs.
Potential savings
If the excise were abolished and retailers passed the full saving on to buyers, a 250-gram pack could theoretically become about 43 cents cheaper, and a 1 kg pack about €1.72 cheaper, including the effect of VAT. This is a theoretical calculation, not a guaranteed price cut. The state would lose the related revenue, while the final price would depend on competition, retailers' pricing policies and supply costs.
