The Impact of the Excise Tax on the Latvian Coffee Market

2024
Inna Pašina, Tatjana Stepaņenko, Vivita Zeimale, Māris Jurušs, Justīna Hudenko

Coffee is one of the most popular drinks in the world. Coffee consumption continues to grow every year. This fact makes it interesting for research and analysis. The aim of this study is to assess the risks associated with the application of the tax and its non-harmonisation. Namely, is the revenue secured? To achieve a balance between tax revenues and the interests of consumers and entrepreneurs, to make sure that coffee has an impact (or no impact) on public health, that the price of coffee is also appropriate in the EU market. Will reducing AN promote coffee consumption. Analysis, price change dynamics, trend calculation methods for the future market changes of coffee demand and supply and price dynamics in the world market have been used for the purposes of the research. Actuality: The question of the influence of AN is very topical, because the influence of AN on the price of coffee in the Latvian market, which can also affect sales volumes, incomes of Latvian entrepreneurs and also on the Latvian shadow market. Problematic question: the price of coffee has become more expensive in the Latvian market and the AN rate has increased, compared to other countries, such as Lithuania, where the price of coffee can be lower due to the fact that there is no AN for coffee in Lithuania. Research object: Latvian coffee market compared to other countries. Subject of the study: the Latvian government, which determines the AN policy, and entrepreneurs who participate in the Latvian market. The Latvian government has to decide whether to apply or change AN for coffee at the request of Latvian entrepreneurs. Subject of the study: the impact of the cancellation of AN on coffee consumption and the market in Latvia. The purpose of the study: To assess the risks associated with the application of the tax and the fact that it is not harmonizable. Namely, is the revenue secured? To achieve a balance between tax revenues and the interests of consumers and entrepreneurs, to make sure that coffee has an impact (or no impact) on public health, that the price of coffee is also appropriate in the EU market. Will reducing AN promote coffee consumption.

Keywords
excise tax, value added tax, revenue

Pašina, I., Stepaņenko, T., Zeimale, V., Jurušs, M., Hudenko, J. The Impact of the Excise Tax on the Latvian Coffee Market. Rīga: RTU, 2024. 52 p.

Publication language
Latvian (lv)