The Riga Black Balzams, the iconic beverage of Latvia's capital city, is produced by Latvijas Balzams.

RIGA — In an interview with the business news magazine Bizness & Baltija released Monday, Latvijas Balzams CEO Kārlis Andersons said his company is considering leaving Latvia to avoid increased excise taxes and smuggling.

Andersons said the taxes are fueling the illicit purchasing of alcohol, which is hurting the large spirits producers and seller’s profits. Between drinking homemade alcohol, a tradition of [private_supervisor]rural Latvians, and buying alcohol smuggled from Belarus or Russia, Latvians are not drinking less even though they’re purchased 29 percent less alcohol in stores, according to the State Revenue Service.

As part of its anti-crisis fiscal consolidation measures, the Latvian national government upped the excise tax in Feb. 2009 to 1.45 lats (€2)  for each percent of alcohol volume in beer, wine and other fermented beverages will be taxed by 40 lats (€56.50) instead of 30 lats (€42.40) per 100 liters and liquors taxed 825 lats (€1,165) instead of 705 lats (€996) per 100 liters sold wholesale.

Andersons said the company was not currently planning to set up headquarters elsewhere, but that it remains an option, noting that Latvijas Balzams is a major taxpayer both for the Riga municipal government and the Latvian national government. However, the announcement was taken seriously enough to suspend trading of Latvijas Balzams shares on the NASDAQ OMX Riga stock exchange Monday, although the stock exchange board later authorized the resumption of trade after clarifying the company’s status with Andersons.

Latvijas Balzams had 82.5 million lats (€116.5 million) in sales last year, a 20.4 percent decrease from 2008. [/private_supervisor] [private_subscription 1 month]rural Latvians, and buying alcohol smuggled from Belarus or Russia, Latvians are not drinking less even though they’re purchased 29 percent less alcohol in stores, according to the State Revenue Service.

As part of its anti-crisis fiscal consolidation measures, the Latvian national government upped the excise tax in Feb. 2009 to 1.45 lats (€2) for each percent of alcohol volume in beer, wine and other fermented beverages will be taxed by 40 lats (€56.50) instead of 30 lats (€42.40) per 100 liters and liquors taxed 825 lats (€1,165) instead of 705 lats (€996) per 100 liters sold wholesale.

Andersons said the company was not currently planning to set up headquarters elsewhere, but that it remains an option, noting that Latvijas Balzams is a major taxpayer both for the Riga municipal government and the Latvian national government. However, the announcement was taken seriously enough to suspend trading of Latvijas Balzams shares on the NASDAQ OMX Riga stock exchange Monday, although the stock exchange board later authorized the resumption of trade after clarifying the company’s status with Andersons.

Latvijas Balzams had 82.5 million lats (€116.5 million) in sales last year, a 20.4 percent decrease from 2008. [/private_subscription 1 month] [private_subscription 4 months]rural Latvians, and buying alcohol smuggled from Belarus or Russia, Latvians are not drinking less even though they’re purchased 29 percent less alcohol in stores, according to the State Revenue Service.

As part of its anti-crisis fiscal consolidation measures, the Latvian national government upped the excise tax in Feb. 2009 to 1.45 lats (€2) for each percent of alcohol volume in beer, wine and other fermented beverages will be taxed by 40 lats (€56.50) instead of 30 lats (€42.40) per 100 liters and liquors taxed 825 lats (€1,165) instead of 705 lats (€996) per 100 liters sold wholesale.

Andersons said the company was not currently planning to set up headquarters elsewhere, but that it remains an option, noting that Latvijas Balzams is a major taxpayer both for the Riga municipal government and the Latvian national government. However, the announcement was taken seriously enough to suspend trading of Latvijas Balzams shares on the NASDAQ OMX Riga stock exchange Monday, although the stock exchange board later authorized the resumption of trade after clarifying the company’s status with Andersons.

Latvijas Balzams had 82.5 million lats (€116.5 million) in sales last year, a 20.4 percent decrease from 2008. [/private_subscription 4 months] [private_subscription 1 year]rural Latvians, and buying alcohol smuggled from Belarus or Russia, Latvians are not drinking less even though they’re purchased 29 percent less alcohol in stores, according to the State Revenue Service.

As part of its anti-crisis fiscal consolidation measures, the Latvian national government upped the excise tax in Feb. 2009 to 1.45 lats (€2) for each percent of alcohol volume in beer, wine and other fermented beverages will be taxed by 40 lats (€56.50) instead of 30 lats (€42.40) per 100 liters and liquors taxed 825 lats (€1,165) instead of 705 lats (€996) per 100 liters sold wholesale.

Andersons said the company was not currently planning to set up headquarters elsewhere, but that it remains an option, noting that Latvijas Balzams is a major taxpayer both for the Riga municipal government and the Latvian national government. However, the announcement was taken seriously enough to suspend trading of Latvijas Balzams shares on the NASDAQ OMX Riga stock exchange Monday, although the stock exchange board later authorized the resumption of trade after clarifying the company’s status with Andersons.

Latvijas Balzams had 82.5 million lats (€116.5 million) in sales last year, a 20.4 percent decrease from 2008.[/private_subscription 1 year]

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