Announcement

             This is to inform that today (29.01.2009) in newspaper „Dienas bizness” – published information is true:

 Currently market is very sensitive due to economical situation in the country and sales volumes are decreasing already. Rapid excise tax and VAT rates increase will lead to more rapid decrease in sales volumes. It does not mean that people will reduce consumption of alcoholic drinks. This situation will favour prosperity of  illegal alcohol in the country and will encourage people to buy the same goods in the nearest foreign countries. As the result the losers will be all participants of  the market: producers of alcoholic beverages, importers, consumers and also state, that will get not only lower incomes from taxes, but also their  expenditures will increase that is connected with healthcare for people, who have  consumed illegal and low-quality alcoholic drinks as well as on unemployed people maintenance.

  In 2009 AS Latvijas balzams is planning that decrease of sales volumes in local market will be -15%, incomes fall it is calculated to be -17%. The decrease in profits will be even more rapid as this year it is planned that costs of raw materials and energy resources will increase, that’s mean that revenue tax will flow into the state treasury in lower amount. Despite the increase of excise tax, it is assumed that AS Latvijas balzam’s contribution to the state treasury will be 2% less than previous year.

 Chairman of the Board                                                              Karlis Andersons

  29.01.2009

 Inta Belova tel.: +371 7011715