# Latvia food price reduction via VAT cuts

> Live situation record from CLSTR: https://clstr.news/situations/latvia-food-price-reduction-via-vat-cuts
> Updated: 2026-09-16T07:07:19.000Z. Sources: 5. Developments: 2.

In Latvia, food prices decreased by an average of 8.32% following a reduction in Value Added Tax (VAT) on items such as bread, milk, eggs, and poultry. The tax rate was lowered from 21% to 12%. 

Data from the Latvian Competition Authority indicates that major retailers, including Rimi, Maxima, and Lidl, passed the savings on to consumers in full. Specific category decreases were noted in dairy products (8.58%), poultry (8.28%), bread (8.26%), and eggs (8.14%). The Estonian Retailers Association remarked that the Latvian case provides evidence that VAT reductions can effectively reach consumers.

## Timeline

### 2026-09-16: Latvia food prices drop 8.32% following VAT reduction

Latvia's VAT reduction on essential food items led to an average price drop of 8.32%, with retailers passing the full tax savings on to consumers.

3 sources. https://clstr.news/cluster/latvia-food-prices-drop-832-following-vat-reduction

### 2026-09-13: Sweden food prices fall following VAT reduction

Swedish food prices have dropped 5.5 percent following a temporary VAT reduction from 12 to 6 percent, though some consumers report continued struggles with the cost of living.

2 sources. https://clstr.news/cluster/sweden-food-prices-fall-following-vat-reduction

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Cite as: Latvia food price reduction via VAT cuts. CLSTR, https://clstr.news/situations/latvia-food-price-reduction-via-vat-cuts