Nature resource tax

Managing the Procedure of Obtaining the Exemption From Payment of the Natural Resources Tax

One of the functions of Administration of Latvian Environmental Protection Fund (ALEPF) is to administrate the natural resources tax in accordance with the Natural Resources Tax  Law.

Taxpayer is importer or producer of goods that are considered as tax objects :

  • materials of packaging and wrapping (paper, metal, plastics etc.)
  • electric and electronic equipment (Refrigerators, electric house holding items, etc.)
  • environmentally hazardous goods (Tires, oils, batteries etc.)
  • Vehicles, which are Registered Permanently for the First Time in the Republic of Latvia

Upon importing or producing goods which are considered as tax objects, the producer must pay natural resources tax to national budget.

The tax must be paid only for the goods which are entering the national market for the first time, so if the goods are being reselled, tax must be paid once

IDEA OF SYSTEM - The tax rate intentionally is set relatively high in order to stimulate the producers of goods to participate or become a part of the waste management system and promote recycling of waste.

Goods mentioned above are being considered as natural resources tax objects because of the harm they may cause to the environment within their life cycle, therefore after those goods are being used, they must be gathered and recycled.

In order to stimulate gathering and recycling of waste, system of collecting the tax is made more flexible and simple for both – state and enterprises, e.g., in case if taxpayer decides to collect and recycle his waste by himself – it is permitted  not to pay the natural resources tax in the budget (receive exemption from the  tax).

EXEMPTION FROM THE TAX CAN BE ACHIEVED IN TWO WAYS:

1.By establishing the waste management system within enterprise (Individual waste management system). That includes that taxpayer himself carries out all actions connected with gathering his waste and delivering it to recycling companies. He can do it by himself or make contract with waste gathering and recycling companies.

2.By signing agreement with waste manager – becoming waste manager’s client (in waste manager’s system). A waste manager is a company that carries out all actions according to legislation in the name of his client

AUTHORITY OF ALEPF

If a company wants to carry out individual system or wants to receive the waste manager’s status, in both cases, they hand in application form in Administration of Latvian Environmental Protection Fund with a waste management plan attached to the application form. (See the correspondent Cabinet Regulations below. Note: some of the regulations do not have English translation)

PACKAGING

WEEE

EHG

VEHICLES

 

ALEPF FUNCTIONS

  • Evaluating the documents in accordance with the rules of legislation (minimal requirements of the system, existence of permits (recycling and gathering licenses etc.);
  • Evaluating existence of collection points in cooperation with State Environmental Service (SES), by checking the true situation on the field;
  • After receiving the results – convening The Council, which consists of experts of environment branch.
  • The Council makes a recommendation regarding the application and waste management plan – to grant exemption from the tax or not;
  • Final decision is made by the Ministry of Environment and Regional Development;
  • If the decision is positive – ALEPF makes an agreement with the new waste manager company or individual waste manager;
  • Monitoring the waste management system, evaluating the reports on waste managing;

Every year waste management systems are subjected to an independent auditing process, the independent auditor hands in his report to ALEPF

 

If you have any questions regarding this topic, feel free to contact our employees:

Artūrs Tribis (Head of Departament)
arturs.tribis@lvafa.gov.lv
office: + 371 67503351
cell.: + 371 28665584

Mārtiņš Ozols 
martins.ozols[at]lvafa.gov.lv
cell.: + 371 26199397