Background information

The measure has been established by Section 7 of the law 'On Measures for the Prevention and Suppression of Threat to the State and Its Consequences Due to the Spread of COVID-19' (adopted on 20 March 2020, valid from 22 March 2020).

Its aim is to support local manufacturers, supporting their conversion in disinfectants producers. This initiative is then aimed to improve, at the same time, population's access to disinfectants. It provides changes regarding turnover of excise goods (strong alcohols). Furthermore, it introduces simplifications in the procedures for production of disinfection means.

Content of measure

The measure establishes that during the emergency situation related to the spread of COVID-19, the excise tax should be reduced with reference to undenatured alcohol which is used in the production of disinfectants, if denatured alcohol is not available. In the light of the above, during the COVID-19 epidemic no financial excise duty is required to obtain a security certificate for disinfectant manufacturers importing alcohol from another Member State.

Furthermore, the State Revenue Service may grant a reduction of the general excise duty in the amount of up to 90 % to companies which have a special permit (licence) for the operation of an approved warehouse and which carries out production of alcohol.

In addition, the Ministry of Economy is elaborating a simplified procedure to admit into the market individual protection means against COVID-19 infection, encompassing disinfectants. The ones produced locally and recognized in the simplified procedure could be used only in Latvia, and they will not need to meet EU standard and EU mark. Such products will not need evaluation from the third side; they will be recognized by the producer’s certificate, sample of a product and laboratory test.

Use of measure

No information on the usage of measure, but a number of local companies are producing disinfectants.

Target groups

Workers	Businesses	Citizens
Does not apply to workers	Sector specific set of companies	Does not apply to citizens

Actors and funding

Actors	Funding
National government	National funds

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	No involvement	No involvement
Form	Not applicable	Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

• Unknown
• Main level of involvement: Unknown

Involvement

Top level social partner organisations – the Latvian Employers’ confederation and the Free Trade Union Confederation of Latvia – on 17 March 2020 has published “Statement on support for government action to limit the spread of COVID-19 and reduce the impact of the crisis on Latvian companies and workers”. The social partners emphasized the need for cooperation of government, businesses, workers and citizens to ensure that everything we do helps to address this crisis.

Views and reactions

No involvement.

Sectors and occupations

This case is not occupation-specific.

Sources

• 25 March 2020: Konfiscēto spirtu dezinfekcijas līdzekļos brīvprātīgi pārstrādās «Madara Cosmetics» (www.lsm.lv)
• 09 April 2020: Law On Measures for the Prevention and Suppression of Threat to the State and Its Consequences Due to the Spread of COVID-19 (likumi.lv)
• 09 April 2020: State Revenue Service informative page on COVID-19 (www.vid.gov.lv)
• 13 July 2020: During the period of downtime benefits, the SRS has paid downtime benefits in the amount of more than 53 million euros to almost 55 thousand people. (www.vid.gov.lv)