Antane: by helping neighbours build up their economy, we are sinking our own

«The contribution to the state budget from raising duel excise tax cannot be calculated purely mathematically because the increase of fuel prices leaves a negative impact on every sector of Latvia’s national economy, as well as every Latvian resident’s level of welfare,» said President of Baltic Association – Transport and Logistics Inga Antane.

BATL has turned to Latvia’s President RaimondsVejonis with a request to use his Constitution-provided rights and request a repeated viewing of amendments to the Excise Tax Law.
 

«The increase of excise tax is being performed right when the volume of cargoes from Russia, Belarus and other CIS countries is suffering massive declines. Considering that diesel fuel price forms a considerable part of the railway transportation cost (up to 30% of the end price), raising excise tax for fuel means an even greater loss of competitiveness for Latvia’s transport, transit and logistics industry. Increase of costs for our transit corridor may turn out catastrophic for our ports and railway on the global transport market,» Antane says.
 

She also notes: «Every ton of cargo that is transported through Latvia brings the economy approximately EUR 15, reaching upwards to EUR 1 billion over the course of a year».
 

Antane emphasizes that the rushed decision to raise excise tax rates for fuel also threatens to reduce total revenue from the transit sector, as well as lose trade routes. «The cargoes currently transported by rail to Latvia’s ports will be likely diverted to ports of neighbouring countries after the increase of costs. Such decisions will stimulate their economies, and sink our own.»

BNN

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