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Generic Tax Name Natural resources tax
Tax name in the national language Dabas resursu nodoklis
Tax name in English Natural resources tax
Member State LV-Latvia
Tax in force since 1991/01/01
If abolished, date on which the tax ceases to apply
Business version date 2015/01/01
Version date 2015/02/17
This file was last updated on

Type of tax
Direct taxes Personal income tax
Corporate income tax
Other

Indirect taxes VAT
Excise duty (EU harmonised)
Alcoholic beverages
Energy products and electricity
Manufactured tobacco
Other

Social security contribution Employers
Employees
Other
 
Legal base

"Law on natural resources tax" (in force from January 1, 1991 till December 31, 1995).

"Law on natural resources tax" (in force from January 1, 1996 till December 31, 2005).

"Natural resources tax law" (in force from January 1, 2006).

 
Who sets
The tax rate is set by




The tax base is set by




The reliefs are set by




Comments
 
Beneficiary





Comments

Tax payments for the extraction or use of natural resources or environmental pollution within the amounts specified by the limits, shall be paid as follows:

  • 1.40 per cent - into the State basic budget;
  • 2.60 per cent - into the special environmental protection budget of such local government in the territory of which the relevant activity is performed.

Tax payments for:

  1. the utilisation of useful characteristics of the subterranean depths, the pumping into geological structures of natural gas or greenhouse gases shall be paid into the special environmental protection budget of such local government in the territory of which the relevant activity is performed;
  2. the use of radioactive substances to the amount of 100 per cent shall be paid into the special environmental protection budget of such local government in the territory of which the radioactive waste disposal site is located.

Tax payments for goods harmful to the environment, packaging, coal, coke and lignite (brown coal), disposable tableware and accessories, vehicles, for the volume of greenhouse gases emitted from installations, which is not included in the amount of transferred greenhouse gas emissions quota, for the unlawful extraction and use of natural resources, for the use of water resources for electricity generation in hydroelectric power stations, whose total installed capacity is less than two megawatts and firework equipment shall be included in the State basic budget.

 
Geographical Scope

Territory of Latvia.

 
Taxpayers

Taxpayer is a person who:

1. has received or is under obligation to receive permit, licence or a C category polluting activity certificate and who in the territory of the Republic Latvia, continental shelf or exclusive economic area:

  • extracts taxable natural resources;
  • sells taxable natural resources extracted in such conomic activity, which is not related to the extraction of mineral resources from subterranean depths;
  • uses useful characteristics of the subterranean depth, by the pumping into geological structures of natural gas or greenhouse gas;
  • emits taxable pollution  substances into the environment or buries waste;
  • emits greenhouse gases  into the environment;
  • uses water resources for production of electricity in a hydroelectric power plant, the total capacity of the hydroelectric station installed of which is less than 2 megawatts;

11 emits greenhouse gases into the atmosphere when performing the aviation activities laid down in Annex 1.1 of Law On Pollution to which the European Union Emission Allowance Trading System applies in the field of aviation.

2. first in the territory of the Republic of Latvia:

  • sells goods harmful to the environment or goods in packing or coal, coke and lignite (brown coal),  firework equipment;
  • uses goods harmful to the environmentutilizes for their economic activities , except goods, which are taxable when sold or goods in packing;
  • upon provision of a service, attaches packaging to the product, and this packaging gets to the recipient of the service after provision of the service;
  • for ensuring his or her economic activities thereof uses coal, coke and lignite (brown coal), except for coal, coke and lignite (brown coal), which are taxable when sold, and fireworks.

3. in the territory of the Republic of Latvia in public catering and retail trade sells disposable tableware and accessories which are manufactured from plastic (polymers), paper, cardboard, composite materials thereof (laminates) with polymer or metal components, metal foil, wood or other natural fibres.

4. utilizes in their activities radioactive substances after the utilization of which radioactive waste is created, and which is necessary to store or dispose of in the Republic of Latvia.

4. registers vehicles permanently for the first time in the Republic of Latvia .

5. leases packing for repeated use. 

 
Tax object and basis of assessment

The following shall be taxable (in accordance with the Law):

1. natural resources as well as the collection of edible park snails;

2. use of the useful characteristics of the subterranean depths, pumping into geological structures natural gas or green house gas;

3. waste disposal and emission of polluting substances;

4. the volume of greenhouse gasses emitted by installations and aircraft operators, which is not included in the amount of transferred greenhouse gas emission quotas;

5. goods harmful to the environment;

6. packaging of goods and products and disposable tableware and accessories;

7. radioactive substances;

8. vehicles in accordance with Management of End-of-Life Vehicles Law;

9. coal, coke and lignite (brown coal);

10. firework equipment.

The basis of assessment is the amount of natural resources (specified in the Law) gained in the territory of the Republic of Latvia or amount of released pollution into environment in the territory of Latvia.

 
Deductions, Allowances, Credits, Exemptions

Exemption from the payment of tax for the use of natural resources

The tax shall not be paid for:

1. background pollution if the taxpayer has proven the relevant pollution level by monitoring data performed in accordance with the requirements laid down in laws and regulations;

2. use of water (flow) in hydro-technical and fishery facilities, also hydroelectric power stations,  whose total installed capacity is more than two megawatts, reservoirs, fish farms and pond farms;

3. the use of thermal and technical water, which has been pumped back into the water intake level after utilisation, without changing the chemical composition of the water (except for desalination );

4. placement of ballast sand in locations specified by the local government of that area;

5. the introduction of pollutants into the filtration layer of the soil or the ground (absorbent) if in the purification equipment project it is provided for as a pollution purification method;

6. a volume of pollutant that due to accidental leakage has entered the environment in an unlawful manner, which the guilty person has collected or neutralised in accordance with the time period and requirements specified by the State Environmental Service;

7. the reduction of the level of groundwater in the process of pumping out water if the pumping out thereof is associated with the extraction of mineral resources;

8. water utilised for manufacturing needs if after purification it is recycled .

 

Exemption from the payment of tax for the utilisation of radioactive substances

1. The tax for the utilisation of radioactive substances, for the performance of their functions, shall not be paid by State institutions which ensure:

  • radiation safety and nuclear safety supervision and control;
  • metrology; that contingency plans are in readiness in the event of radiation accidents;
  • radiometric control on the State borders;
  • the performance of criminal procedural activities.

2. The tax for the utilisation of radioactive substances shall not be paid for by medical treatment institutions;

3. The tax for the utilisation of radioactive substances shall not be paid by radioactive waste disposal and management undertakings;

4. A person who utilises radioactive substances shall not pay the tax if the purchase contract includes guarantees that the used ionising radiation source shall be sent back to the State of manufacture;

5. A person who utilises radioactive substances shall not pay the tax if these radioactive substances are used for demonstration in exhibitions, fairs or similar events and they are brought into Latvia for a time period not exceeding 30 days.

 

Exemption from the payment of tax for vehicles, which are registered permanently for the first time in the Republic of Latvia

 

The tax for vehicles shall not be paid by the manufacturer of the vehicle or authorised representative or second-hand vehicles  dealer thereof, who in accordance with the Management of End-of-Life Vehicles Law has established and applies an end-of-life vehicle management system and has entered into an agreement with an institution subordinated to the Ministry of Environmental Protection and Regional Development and specified in regulatory enactments regarding the application of this system or participates in the operation of such system or has entered into an agreement with a managar about participation in an end-of-life vehicle management system.

 

 

Exemption from the tax for packaging and disposable tableware and accessories

A taxpayer shall not pay the tax for packaging or disposable tableware and accessories if he or she ensures the fulfilment of the norms for used packaging or disposable tableware and accessories recovery specified in regulatory enactments regarding environment protection, as well as complies with one of the following conditions:

1. has established and applies the used packaging or disposable tableware and accessories management system and has entered into an agreement about the used packaging or disposable tableware and accessories management system with the institution subordinated to the Ministry of Environmental Protection and Regional Development and specified in regulatory enactments regarding application of this system;

2. has entered into an agreement with the packaging or disposable tableware and accessories manager regarding participation in the used packaging or disposable tableware and accessories management system.

 

Exemption from the payment of tax for goods harmful to the environment

A taxpayer shall not pay the tax for goods harmful to the environment if he or she ensures the fulfilment of norms for the recovery of the waste of goods harmful to the environment specified in regulatory enactments regarding environment protection, as well as complies with one of the following conditions:

1. has established and applies a waste management system for goods harmful to the environment and has entered into an agreement with the Ministry of Environmental Protection and Regional Development about application of this system;

2. has entered into an agreement with a waste supervisor for the waste of goods harmful to the environment regarding participation in the waste management system for spent goods harmful to the environment.

 

Exemption from the payment of tax for the emission of carbon dioxide

1. the tax shall not be paid for the emission of carbon dioxide (CO2) from equipment for which a greenhouse gas emission permit has been issued to its operator in accordance with the procedures specified in the Law On Pollution;

2. the tax shall not be paid for the emission of carbon dioxide (CO2) which emerges while using renewable energy resources and peat in stationary technological installations referred to in Annex 2 of the Law On Pollution.

 

Exemption from payment of tax for the utilisation of substances depleting the ozone layer

The tax for the utilisation of substances depleting the ozone layer shall not be paid by a merchant who in accordance with the technological and environment protection requirements specified in regulatory enactments regarding environmental protection, utilises ozone layer depleting substances for manufacturing other chemical substances if the substance depleting the ozone layer completely changes its chemical composition during the chemical transformation process.

 
Rate(s) Structure
Tax Rates for the Extraction of Natural Resources
No Type of resource Unit of measurement Rate, EUR
1. Soil m3 0.43
2. Sandy loam and clay loam, aleirite m3 0.14
3. Quartz sand m3 0.45
4. Sand m3 0.21
5. Sand-gravel (fragments > 5 mm content > 15%) m3 0.36
6. Clay, other clayey rock for the production of construction materials m3 0.21
7. Dolomite for decoration (finishing) m3 0.36
8. Dolomite m3 0.21
9. Limestone m3 0.28
10. Freshwater limestone (friable and chunky) m3 0.14
11. Travertine m3 1.42
12. Gypsum m3 0.54
13. Field stones m3 0.57
14. Pigmentary soil m3 0.14
15. Peat (moisture – 40%) ton 0.55
16. Organogenic sapropel (algal and zoogenic – algal) and organocenic lime with ash, < 30% (moisture – 60%) ton 0.71
17. Other sapropel (moisture – 60%) ton 0.14
18. All types of medicinal mud ton 0.71
19. Edible park snails (Helix pomatia L), collected for further economic utilisation kg 0.04

 

Tax Rates for the Extraction of Water

No Type of water and type or preparation thereof Unit of measurement Rate, EUR
1. Surface water m3 0.009
2. Ground water, including freshwater and spring waters used in water supply    
2.1. high value ground water m3 0.04
2.2. medium value ground water m3 0.03
2.3. low value ground water m3 0.014
3. Medicinal mineral water or mineral water used for medical treatment in thermal or hydrotherapy institution in the territory of extraction of water m3 0.14
4. Ground water, also freshwater and spring waters sold further on:    
4.1. high value ground water m3 1.42
4.2. medium value ground water m3 0.85
4.3 low value ground water m3 0.43

 

Tax Rates for Disposal of Waste

   
No Type of waste Unit of measurement Rate, EUR
1. Municipal waste ton 12.00
2. Construction and demolition waste ton 21.34
3. Asbestos in the form of fibres and dust ton 35.57
4. Disposal of hazardous waste ton 35.57
5. Disposal of production waste ton 21.34

 

Tax Rates for Water Pollution

   
No Classification of polluting substances according to the category of hazardousness Unit of measurement Rate, EUR
1. Non-hazardous substances ton 5.50
2. Suspended substances (non-hazardous) ton 14.23
3. Moderately-hazardous substances ton 42.69
4. Hazardous substances ton 11,382.97
5. Especially hazardous substances ton 71,143.59
6. The total phosphorus ton 270.0

 

Tax Rates for Goods Harmful to the Environment

   
No Type of goods Unit of measurement Rate, EUR
1. Lubricating oils kg 0.17
2. Electric batteries and galvanic sources of electricity:    
2.1. Electric batteries, lead kg 0.74
2.2. Electric batteries, Ni-Cd and Fe-Ni kg 4.0
2.3. Galvanic elements and galvanic pile kg 11.0
2.4. Other electrical batteries kg 17.03
3. Substances depleting the ozone layer (freons, halons and others) (odp – ozone depletion potential) kg/odp 2.22
4. All types of tyres   0.33
5. Oil filters kg 0.33
6. Electrical and electronic equipment in accordance with Section 20.1, Paragraph one of the Waste Management Law: piece  
6.1. large household equipment (except for large refrigeration equipment, cold storage depots and refrigerators)   1.44
6.2. large refrigeration equipment, cold storage depots and refrigerators kg 2.33
6.3. small household equipment kg 3.00
6.4. information technology and electronic communication equipment (except for monitors and mobile telephones) kg 3.00
6.5. monitors kg 2.33
6.6. mobile telephones kg 3.33
6.7. equipment provided for wide consumption (except for television sets) kg 1.44
6.8. television sets kg 2.33
6.9. electrical and electronic instruments (except for large stationary production machinery which is not portable or is permanently fixed) kg 3.01
6.10. gas-discharge light bulbs kg 8.58
6.11. lighting installation (except for gas-discharge light bulbs) per piece 2.22
6.12. monitoring and control tools kg 2.00
6.13. toys, sports and recreation inventory kg 3.00
6.14. medical devices (except for implanted and contaminated medical devices) kg 2.00
6.15. automatic vending machines kg 3.00

 

Tax Rates for the Packaging of Goods and Products and for Disposable Tableware and Accessories

No Type and material of goods used in packaging products and disposable tableware and accessories  Rate, EUR per 1 kg
1. Of glass source materials 0.44
2. Of plastic (polymer) source materials, except bioplastic or oxy-degradable plastic source materials 1.22
3. Of metal source materials 1.10
4. Of wood, paper and cardboard or other natural fibre and bioplastic source materials 0.24
5. Of oxy-degradable plastic source materials 0.70
6. Of polystyrene source materials 1.56
7. Plastic bags (weight of one bag does not exceed 0.003 kg) 3.70
8. Plastic bags (weight of one bag exceeds 0.003 kg) 1.14

 

Tax Rates for Radioactive Substances

No Characteristics of the radioactive substance Unit of measurement Rate, EUR
1. 1st radionuclide group (allowable total radioactivity 1 m3 waste > 1,012 Bq), closed radiation source m3 waste 711.44
2. 2nd radionuclide group (allowable total radioactivity 1 m3 waste > 1,012 Bq), open radiation source m3 waste 1,422.87
3. 3rd radionuclide group (allowable total radioactivity 1 m3 waste > 109 Bq), closed radiation source m3 waste 2,134.31
4. 4th radionuclide group (allowable total radioactivity 1 m3 waste > 109 Bq), open radiation source m3 waste 4,268.62
5. 5th radionuclide group (allowable total radioactivity 1 m3 waste > 106 Bq), closed radiation source m3 waste 3,557.18
6. 6th radionuclide group (allowable total radioactivity 1 m3 waste > 106 Bq), open radiation source m3 waste 7,114.36
7. 7th group, ionising radiation sources, for which any radionuclide activity exceeds the allowable limits for 1 m3 waste m3 waste 14,228.72

 

Tax Rates for Air Pollution and the Volume of Greenhouse Gases Emitted by Stationary Technological Installations which is not Included in the Number of Transferred Allowances

      2014 2015
No Classification of emission Unit of measurement from January 1st
 till December 31
from January 1st 
1. Carbon dioxide (CO2) emission from stationary technological installations (except for exemptions specified in the Law On Pollution) http://www.vvc.gov.lv/export/sites/default/docs/LRTA/Likumi/On_Pollution.doc ton 2.85 3.50
2. Carbon dioxide (CO2) emission from stationary technological installations (except for exemptions specified in the Law On Pollution) http://www.vvc.gov.lv/export/sites/default/docs/LRTA/Likumi/On_Pollution.doc ton 2.85 3.50
3. Solid particles (dust not containing heavy metals) ton 51.22 75.00
4. Carbon monoxide (CO) ton 7.83 7.83
5. Ammonia (NH3) and other non-organic compounds ton 18.50 18.50
6. sulphur dioxide (SO2), nitrogen oxide (NOx - nitrogen oxide sum, recalculated to NO2), volatile organic compounds and other hydrocarbons (CnHm) ton 85.37 85.37
7. Volatile organic compounds and other hydrocarbons (CnHm) ton 85.37 85.37
8. Heavy metals (Cd, Ni, Sn, Hg, Pb, Zn, Cr, As, Se, Cu) and compounds thereof, recalculated for the relevant metal, and vanadium pentoxide recalculated to vanadium ton 1,138.30 1,138.30
9. PM10 air emissions for bulk handling at open terminals or other open areas ton 1,024.40 1,500.00

Tax rates for Coal, Coke and Lignite (Brown coal)

No. Classification of Coal, Coke and Lignite (Brown coal) Unit of measurement Rate, EUR
1. Coal, Coke and Lignite (Brown coal) with thermal input (GJ/t) indicated in accompanying documents GJ/t 0.30
2. Coal, Coke and Lignite (Brown coal) with thermal input (GJ/t) not indicated in accompanying documents t 8.54

 

Tax rates for the Volume of Natural Gas or Greenhouse Gases Pumped into Geological Structures

No. Classification of Natural Gas or Greenhouse Gases Unit of measurement Rate, EUR
1. Natural gas pumped into geological structures 100 m3 0.0143
2. Methane pumped into geological structures 100 m3 0.0143
3. Carbon dioxide pumped into geological structures 100 m3 0.07
4. Greenhouse gasses pumped into geological structures 100 m3 0.14
 
Tax due date

A taxpayer shall calculate tax and pay it into a budget account for the preceding quarter by the 20th date of the following month.

 
Tax collector

State Revenue Service.

 
Special features

 
Economic function







Comments
 
Environmental taxes



Comments
 
Tax revenue
ESA95 code d29f

Year
Annual tax revenue (millions)
Currency
Tax revenue as % of GDP
Tax revenue as % of total tax revenue
2012 17.59 EUR 0.08
2011 14.67 EUR 0.07
2010 12.33 FIM 0.07
2009 10.45 EUR 0.06
2008 13.32 EUR 0.06
2007 14.83 EUR 0.07
2006 15.79 EUR 0.09
2005 14.86 EUR 0.11
2004 12.42 EUR 0.11
2003 15.32 EUR 0.15
2002 18.56 EUR 0.18
2001 18.81 EUR 0.20
2000 18.54 EUR 0.21
1999 17.07 EUR 0.24
1998 16.28 EUR 0.25
1997 13.88 EUR 0.24
1996 2.47 EUR 0.05
1995 2.19 EUR 0.05

Comments