Latvia Adopts 2026 Budget: VAT Cut on Food, Higher Excise Taxes, Focus on Security and Families

• Latvia’s parliament adopted the 2026 State Budget on 4 December 2025.
• The budget increases revenue through higher excise taxes on tobacco and alcohol and introduces a temporary one-year VAT reduction on essential food items starting July 2026.
• EUR 844.1 million in planned spending is cut and redirected to invest about EUR 700 million more in security, family support, and education.
• The basic personal allowance rises by EUR 40 to EUR 550, and the minimum monthly wage increases to EUR 780.
• The budget aligns with EU and national fiscal discipline rules and focuses on security, family support, and sustainability.

Source: regfollower.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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