Low-value parcel tax: over €5 million collected, but only €1 million reaches state budget

For more than a month, the European Union has applied a €3 customs tax to low-value parcels ordered online from third countries — meaning countries outside the EU. The charge is levied on each individual commodity item, so a single order can include several taxable items. The aim of the new rule is to create more equal competition conditions between foreign online retailers and local businesses.

Latvian Radio examined data to find out how much money has been collected in Latvia and whether the tax has changed consumer demand for shipments from China, the United Kingdom, the United States and other third countries. The figures show that total revenue has exceeded five million euros. However, only one million euros has actually reached the state budget.

This gap between total revenue and the amount transferred to the budget indicates that not all collected money immediately ends up in the state treasury. Latvian Radio sought to clarify how exactly the funds are distributed and how much still needs to be transferred. The effect of the new tax on parcel volumes from the countries in question is also still being assessed.