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Tuesday, 23.04.2024, 12:01
President: tax hikes will increase shadow economy in Latvia
BC, Riga, 19.05.2015.
Print version
Print versionRaising taxes will increase shadow economy, President Andris Berzins said in an interview with the LNT show "900 sekundes", reports LETA.
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According to the president, there is no reason to hope that tax hikes will increase state budget revenue.
Berzins said that a proportionate non-taxable minimum income would facilitate reduction of the shadow economy.
As reported, the proportion of shadow economy in Latvia is not reducing, and is almost two times higher than in Lithuania and Estonia, according to the latest "SSE Riga" report on Baltic shadow economy.
The proportion of shadow economy in Latvia in 2014 made up 23.5% of the gross domestic product, and, compared with 2013, has reduced by only 0.3%. Statistically, this change is insignificant, which is why the level of shadow economy in Latvia remains the same as in 2014, said Arnis Sauka, the author of the study.
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