Analytics, Banks, Financial Services, Latvia, Taxation

International Internet Magazine. Baltic States news & analytics Sunday, 05.07.2020, 11:02

Residents consider Latvian labor tax system complicated - survey

BC, Riga, 28.01.2020.Print version
Residents of Latvia consider the labor tax system complicated, as Evija Kropa from Swedbank Institute of Finances informed BC, referring to a survey carried out by the institute.

She said that the majority, or 58% of respondents, admitted that they were only partly aware of labor taxes and tax exemptions.

At the same time, 27% of residents said they had full information about labor taxes and tax exemptions. The majority of respondents who said so are high income earners, or residents earning EUR 1,000 a month or more, as well as senior managers and businessmen.

16% of respondents, almost a third of whom are under 30, admit to a complete lack of understanding of the tax system. These respondents said that the labor tax system was too complicated.

"There are occasional discussions about a possible revision of labor tax policy in Latvia," commented Kropa. "While it may seem that citizens are tired of frequent and massive changes in this area, the overwhelming majority, or 82% of respondents, said that labor taxes had to change," said Kropa.

The survey found that 48% of low-skilled workers and those with monthly incomes below EUR 700 support a complete revamp of the labor tax system. In turn, those making more than EUR 700 a month said that changes should be carried out within the existing system.

In the meantime, 5% of respondents believe that no changes to the labor tax system are needed at this time to avoid further changes and uncertainties.

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