The Saeima has adopted and the President promulgated the following laws: Excise Tax On tobacco products chapter I. General provisions article 1. The terms used in the law (1) the terms used in the Act complies with the law "About taxes and duties, customs laws and the law" on customs duties (tariffs) "used terms, if this law provides otherwise.
(2) the Act is used in the following terms: 1) excise duty stamps, the State revenue service issued a special tobacco excise tax stamps, intended only for the labelling of cigarette and cigarette box is attached; It certifies that the excise duty stamps marked the tobacco products have been taken under the control of the country a b wells products excise duty (tax) payment conditions, and that tobacco is legal origin;
2) tax warehouse: a tobacco tax warehouse — the State revenue service controlled site that the storekeeper is produced, processed, stored, imported or send tobacco products, applying the deferred taxation in accordance with the conditions of this law;
3) storekeeper-storekeeper excise duty — a legal person with the State revenue service permission to hold a tax warehouse and the ownership or possession of which is a tax warehouse;
4) licensed importer, legal person of the Cabinet in the order received the license for imports of tobacco products in the customs territory of the Republic of Latvia for the release for free circulation and which does not have the status of the holder of the warehouse.
 
2. article. The scope of the law (1) this law shall determine the order in which tobacco products are taxed, and this applies to any action in the customs territory of the Republic of Latvia are made with tobacco products, including tobacco production, processing, storage, marketing, import, export and transportation.
(2) the procedures to be carried out in business with tobacco products in the customs territory of the Republic of Latvia (production, processing, storage, sales, import, export and transport), by laws and Cabinet regulations.
 
3. article. Taxable item (1) item of taxable tobacco products, which is wholly or partly made of tobacco or tobacco substitutes and of smoking: 1) cigars and cigarillos;
2) cigarettes;
3) smoking tobacco: a) finely cut tobacco for cigarette wound, b) other smoking tobacco.
(2) taxable tobacco products codes in accordance with the combined nomenclature, listed in annex to this law.
(3) For cigars and cigarillos, tobacco products are to be considered as who composed wholly or partly of tobacco coiled leaves or tobacco substitutes and that the outer shell is from natural tobacco or any other tobacco-containing material.
(4) on cigarettes be considered that tobacco products composed wholly or partly of cut tobacco or tobacco substitutes cut and wrapped in paper or any other tobacco-free.
(5) For smoking tobacco in tobacco products to be considered as who composed wholly or partly of tobacco leaves and cut which can be smoked without further industrial processing.
 
4. article. Taxable persons are taxable persons: 1) natural or legal persons or arrangements associated with the contract or the natural or legal person who brings a group of tobacco products in the customs territory of the Republic of Latvia for the release for free circulation;
2) storekeeper in the cases stipulated by law.
 
5. article. Excise duty stamps (1) excise duty stamps unlabelled cigarettes banned from the store and realize the customs territory of the Republic of Latvia, except for in the second paragraph of this article, in certain cases.
(2) the excise duty stamps unlabelled cigarettes allowed to store and realize the customs territory of the Republic of Latvia: 1) the Excise warehouse;
2) of the Customs Act and Cabinet of Ministers rules places where tobacco products allowed to store and realize without payment of duty.
(3) excise duty stamps are allowed to label cigarettes: 1) in the territory of Latvia, only Excise warehouse;
2) abroad for imports into the customs territory of the Republic of Latvia.
(4) the order in which cigarettes labelled with excise stamps is determined by the Cabinet of Ministers.
 
6. article. Excise warehouse (1) tobacco production, processing and packing only Excise warehouse.
(2) storage of tobacco products, the application of deferred taxation, as well as raw tobacco storage allowed only an Excise warehouse except customs law in certain cases.
(3) the warehouse keeper in charge of all tobacco products in the Excise warehouse, as well as tracks and records any action with those in the Excise warehouse.
(4) in order to create and keep the Excise warehouse, the warehouse keeper shall submit to this law, the provision laid down in article 13.
(5) the order in which allowed to create and hold a tax warehouse shall be established by the Cabinet of Ministers.
 
7. article. Tax rates and their application (1) the tobacco tax, calculated at the following rates: 1) cigars and cigarillos (cigars or cigarillos per 1000): 11 lats;
2): (a) cigarettes) with the filter (for 1000 cigarettes): 4.5 lats, b) without a filter (about 1000 cigarettes): 5.5 lats;
3) smoking tobacco (about 1000 grams tobacco): 5.5 million lats.
(2) taxable cigarette (with or without a filter) is a cigarette of up to 90 millimetres (not including filter or mouthpiece).
(3) on the cigarette, which is more than 90 millimetres (not including filter or mouthpiece) but not exceeding 180 mm (not including filter or mouthpiece), the tax payable for a double; on the cigarette, which is more than 180 millimetres (not including filter or mouthpiece), but not more than 270 millimetres (not including filter or mouthpiece), tax payable in the triple etc.
 
8. article. Exemptions To duty shall be: 1) cabinet order: a) de naturēt in tobacco products, b) tobacco products, which are used to measure the quality of tobacco, tobacco products) who lost for reasons of force majeure;
2) tobacco products, which the Republic of Latvia natural persons entering the customs territory of the personal consumption: a) to 200 cigarettes, b) to 20 cigars or cigarillos,

c) to 200 grams of smoking tobacco, d) other tobacco products, in proportion not exceeding the allowed quantity above.
Chapter II. Tax calculation and payment article 9. Calculation of the tax, the tax is calculated by the article 7 of this law set rates: 1) on tobacco products that are imported in the customs territory of the Republic of Latvia;
2) tobacco products that are exported from an Excise warehouse;
3) cigarettes, which are to be marked with excise duty stamps receive this mark.
 
10. article. Tax evasion (1) taxation the tax period is one calendar month.
(2) tax evasion may only be used for non-cash settlement.
(3) the Licensed importer or warehouse keeper duty on cigarettes, where this Act provides otherwise, pay in one of the following cases: 1) before the excise tax stamps;
2) received during the tax period for excise duty stamps, within 15 days after the end of the tax period.
(4) a licensed importer calculated tax on manufactured tobacco (other than cigarettes), which imported from foreign countries in the Republic of Latvia in the customs territory for release for free circulation, pay the credit institution before the presentation of tobacco products in the Customs Office, if this law provides otherwise.
(5) the warehouse keeper for the taxation period calculated tax on manufactured tobacco (other than cigarettes) exported during the tax period from a tax warehouse, paid into the State budget within 15 days after the end of the tax period if this law provides otherwise.
 
11. article. Tax Declaration (1) the tax return for the tax period shall be submitted by the taxable person for the State revenue service within 15 days after the end of the tax period.
(2) a warehouse keeper shall submit tax returns for each of the Excise warehouse.
(3) the tax declaration form shall be approved by the Cabinet of Ministers.
 
12. article. Excise duty stamps and receive (1) excise duty stamps issued by the State revenue service.
(2) the excise duty stamps can be obtained from: 1) licensed importers;
2) warehouse keepers.
(3) if the excise tax stamps, licensed importer or warehouse keeper of this law in accordance with the procedure laid down in article 13, submit a security for the payment of the tax corresponding to the excise duty stamps issued for the quantity, if this law provides otherwise.
(4) If a licensed importer or warehouse keeper shall return the received but not used or damaged excise stamps, State revenue service, their acquisition costs shall be borne by the licensed importer or warehouse keeper, who received the mark of the excise duty, other than the sixth and ninth cases referred to.
(5) Given the excise stamps are destroyed, except those that are producing the excise tax stamps for oriģināliepakojum. Expenses related to the checked in excise duty stamps, shall be borne by the licensed importer or warehouse keeper that given excise tax stamps, i z taking the sixth part of this article in this case.
(6) If the State revenue service licensed importer or warehouse holder issued a corrupted or invalid excise stamps, of this article fourth and fifth part the expenditure referred to in the licensed importer or warehouse holder does not pay. The State revenue service returned damaged or invalid excise stamps, exchanged for new excise stamps.
(7) if the licensed importer or warehouse keeper shall return the received during the tax period, but unused or damaged excise stamps for the State revenue service within 15 days after the end of the tax period, the tax that is calculated according to the size of the received excise marks, licensed importer or warehouse keeper is not rendering a CSR.
(8) if the licensed importer or warehouse keeper shall return the received but not used or damaged excise stamps and the State revenue service tax has been paid under the atdotaj brand of excise duty, the tax paid is transferred to subsequent tax payments or by the importer or licensed warehouse at the request of the holder of the refunded 30 days after of this article fourth and fifth part of the cover.
(9) if the licensed importer or warehouse received shall be returned by the keeper, but unused stamps, of excise duty to the oriģināliepakojum, the establishment of this article fourth and fifth part the expenditure referred to in the licensed importer or warehouse holder does not pay.
 
13. article. (1) the security to do business with tobacco products and the use of deferred taxation, the licensed importer and the storekeeper is lodged in accordance with the procedure laid down in this article.
(2) the size of the security may not be less than the tax calculated on the quantity of tobacco products, which will be in the business of applying the deferred taxation, other than the third and fourth cases referred to.
(3) no security shall be lodged in respect of cigarettes, if the licensed importer or warehouse keeper pursuant to the received excise tax stamps before the calculated pay excise tax stamps.
(4) the Cabinet of Ministers shall lay down the conditions in which the case of the holder of the warehouse, which produces tobacco products, you can reduce the size of the collateral.
(5) a licensed importer or warehouse keeper may submit the following assurances: 1) a one-time provision for the debt calculated tax one certain quantity;
2) General Security for a specific period of time and calculate the tax debt in a certain amount.
(6) the security shall be given in one of the following conditions: 1) lodged a security;
2) submitting commitments implementing the insurance policy;
3-dītiestād of the kr) shall provide a guarantee;
4) licensed importer or warehouse through the holder of a mortgage agreement with the State revenue service.

(7) if the licensed importer or warehouse keeper who returned received during the tax period, but unused or damaged excise stamps for the State revenue service within 15 days after the end of the tax period, before the excise tax stamps submitted a single receipt is, which stipulated in its calculated excise marks, then arrange the agenda n, which corresponds to the amount of the tax that is determined in accordance with atdotaj of the excise tax stamps are deleted or returned to the applicant after article 12 of this law in the fourth and the fifth part of the cover.
(8) the procedure for submitting, and returning security to be deleted are determined by the Cabinet of Ministers.
 
14. article. Deferred tax payment application, move the tobacco products (1), the Licensed importer may be applied to deferred payment calculated tax on tobacco products that are imported to the customs territory of the Republic of Latvia in their movement to the Excise warehouse.
(2) a warehouse keeper may be applied to deferred payment calculated tax on tobacco products: 1) from one Excise warehouse is moved to another excise duty from liktav;
2) removed from the Excise warehouse for further removal from the customs territory of the Republic of Latvia;
3) entering the customs territory of the Republic of Latvia in their movement to the Excise warehouse.
(3) a licensed importer who carried out the first paragraph of this article, and the storekeeper, which this article referred to in the second paragraph, do not pay estimated tax if the State revenue service to submit documents showing that the tobacco products meet one of the following conditions: 1) they have received a tax warehouse;
2) they are exported from the customs territory of the Republic of Latvia.
(4) a licensed importer or warehouse keeper that tobacco products move under the first or second subparagraph, do not submit the third part of this article documents, pay estimated tax by this law, laid down in article 7.
Chapter III. Warehouse holder responsibilities article 15. Requirements that lay the storekeeper, who manufactures tobacco products for export from the customs territory of the Republic of Latvia or the sale of duty-free trade stores inventory holder, which produces tobacco products for export from the customs territory of the Republic of Latvia or the sale of duty free sales in stores, one of the following requirements: 1) for each tobacco product packaging (box) must be well visible the words "export" or its translation in English for "export" or the words "without the taxes" or its translation to English "DUTY free";
2) for each tobacco product packaging (box) must be marked according to the requirements of recipient countries.
 
16. article. The inventory of tobacco products (1) it is the duty of the holder of the warehouse to make tobacco products at-occurs in the tax warehouse, and pēctaksācij on the first date of the period.
(2) the results of the remaining Inventory accounting records and tax declaration within the time limit laid down in this law.
(3) If the counting is found in the accounting records and counting the difference, the difference between the assessment — the surplus or deficit (izlaupījum, loss, loss, etc.), display both the accounting records and tax returns, in the following order: 1) if surplus, counting found it taxed by this law, in article 7 specific rates;
2) if found in the physical inventory shortage, it taxed by this law, in article 7 specific rates, except that the shortage occurred this law, article 8 paragraph 1 referred to "c" loss.
(I) chapter V. Final provisions article 17. Liability for violations of this law (1) a taxable person who has not submitted a tax return or not submitted at all, not noticed in the statutory time limit for payment or reduced the taxable amount of the object of the infringement responsibility under this law and the law on taxes and duties ".
(2) a warehouse keeper, which exported tobacco products from the customs territory of the Republic of Latvia or distributes tax-free trade shops, without this law, referred to in article 15 requirements, pay the tax in accordance with article 7 of the law on rate and penalty tax.
(3) the relevant national supervisory and control authorities have the right legislation in order to seize tobacco products that were introduced into the customs territory of the Republic of Latvia or exported from an Excise warehouse without payment of duty on them and not submitting to this law, the provision laid down in article 13 of the Iza in the performance.
(4) the Seized tobacco products must be prescribed by the Cabinet of Ministers.
(5) if the person or entity shall carry out any activities with tobacco products not subject to the provisions of this law, the State revenue service has the right amount of tax is not paid in accordance with article 7 of this law, in order to collect the unchallenged national budget and levy a fine of two hundred percent of the outstanding tax amount.
 
18. article. Tax matters in order to appeal against the decision taken on the odokļ N of the decisions taken by the taxable person is entitled to appeal to the law "About taxes and duties".
Transitional provisions 1. Article 5 of this law, the second and third paragraphs, and article 6, first paragraph regarding the tobacco companies who have received a licence for the manufacture of tobacco products and marketing, applicable from 1 July 1999.
2. until 30 June 1999 for the production of tobacco companies who have received a licence for the manufacture of tobacco products and the sale of: 1) is taxable and may receive excise tax stamps in accordance with this law, the second subparagraph of article 12;
2) tax on each of the last decade of the actual turnover pay the current month 13 and 23 date and next month's date, but 3 not later than 30 days from the date of receipt of the excise marks;
3) do not pay tax on production, which: (a)) to a tax warehouse, b) are exported from the customs territory of the Republic of Latvia, c) exported to the customs warehouse.

3. If the transitional provisions referred to in paragraph 2, the enterprise produces tobacco products for export from the customs territory of the Republic of Latvia or the sale of duty free sales in stores, they must follow one of this law, article 15, paragraph 1 or 2.
4. the Cabinet of Ministers to 2003 develop amendments to this law, to match the specific excise duty on cigarettes in the rate system with the relevant requirements of the European Union.
The law shall enter into force on 1 January 1999.
The law adopted in 1998 the Saeima on 29 October.
 
The President g. Ulmanis in Riga on 11 November 1998, the State of law "on excise duties on manufactured tobacco" excise tax on tobacco products applies to goods in accordance with the combined nomenclature shall comply with the following codes: 1) cigars and cigarillos — 2402 10 00 0;
2): (a) cigarettes with filter-2402 20 10 1) and 2402 20 90 1, b) without filter: 2402 20 10 9 and 2402 20 90 9;
3) smoking tobacco — 2403 10 10 0 and 2403 10 90 0.