To increase the current limits for farmers on the use of marked diesel fuel, the Saeima on Thursday, 15 May, adopted amendments to the Law on Excise Duty in the final reading under urgent procedure.

The amendments stipulate that marked diesel fuel, which is subject to a reduced excise duty rate, will be available to farmers at a rate of 180 litres per hectare for fruit cultivation and various types of grassland. For vegetable cultivation, farmers will be entitled to receive up to 290 litres per hectare, and up to 145 litres per hectare for organic grassland areas. Previously, farmers were eligible to receive up to 130 litres per hectare for these types of crops during each agricultural year.

These increases follow proposals from farmers’ non-governmental organisations, which pointed out that the previously set limits did not reflect actual agricultural needs. With the increasing mechanisation of crop production, farmers are relying more heavily on machinery, particularly in fruit and vegetable farming and livestock production.

As marked diesel fuel is allocated for the agricultural year—from 1 July of the current year to 30 June of the following year—the amendments mean that farmers will be able to access increased fuel volumes as early as this summer.

The amendments to the Law on Excise Duty also introduce other changes. With new alcohol-containing products now entering the market in weight-based packaging, alcoholic beverages packaged in containers of up to 120 grams will no longer require excise duty stamps.

In addition, recognising the rapid pace of digitalisation and the growth of cross-border transactions outside Latvia, the regulatory framework has been updated for Latvian businesses handling excise goods that are not physically located within the country.

Saeima Press Service