Latvia commits to a review of existing tax policies with the aim to provide fiscal incentives to improve waste management, reduce landfilling, enhance efficient use of resources and transition from natural resources to secondary materials. The commitment will set out clear provisions regarding the application of the Natural Resources Tax for waste management activities, in particular, disposal of hazardous and non-hazardous waste. The review is planned to set the Natural Resources Tax for different subjects to stimulate sorting and separate collection of waste, recycling, recovery and re-use, as well as encourage sustainable production and consumption patterns and use of secondary resources. The increased tax rate for waste disposal will reduce the volumes of waste in landfills while stimulating waste management companies to switch to other more favourable waste treatment options, such as recycling or reuse. Moreover, this instrument will result in an increase of separate waste collection and reduction of mixed waste volumes. In addition, these measures aim to encourage sustainable production and consumption patterns, the replacement of materials and products with environment-friendly alternatives, the replacement of natural resources by secondary resources and improved quality of secondary resources. These measures will help Latvia to transition towards a circular economy, where waste becomes a resource and returns back to the economy.
The commitment falls under focus area 4 of the Batumi Initiative to shift consumer behaviours towards sustainable consumption patterns.
Implementing partners include Ministry of Economics, Ministry of Finance, municipalities, waste management companies and associations (e.g. Latvian Waste Management Association, Latvian Association of Waste Management Companies), producer responsibility organisations, and non-governmental organisations.
The commitment contributes to SDGs 11 and 12.