Analytics, Banks, Financial Services, Labour-market, Latvia, Taxation

International Internet Magazine. Baltic States news & analytics Friday, 14.08.2020, 14:57

The crisis is the right time to reduce the tax burden on labor - Rutkaste

BC, Riga, 24.07.2020.Print version
The crisis is the right moment to reduce the tax burden on labor in Latvia, Uldis Rutkaste, the head of the Bank of Latvia's Monetary Policy Department said in an interview with Latvian Radio on Friday cited LETA.

He pointed out that the tax burden on labor in Latvia is relatively high - above the average in OECD countries, as well as higher than in Lithuania and Estonia.


"This means that it is more expensive for our companies to hire workers than for many of our competitors. Therefore, it would be logical to reduce the tax burden on labor and shift lost tax revenues to other tax categories. The crisis is the right time to reduce the tax burden on labor. If this is done, the benefits to the economy would be much greater," said Rutkaste.


He pointed out that reducing the tax burden on labor would help people who have lost their jobs during the crisis to return to the labor market faster, while companies would be able to compete more successfully in the market.


"It would do two good things for the economy - it would help companies compete more successfully in this post-crisis situation, and help people who have lost their jobs as a result of the crisis to return to the labor market faster," Rutkaste said.






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