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International Internet Magazine. Baltic States news & analytics Friday, 29.03.2024, 08:26

Zatlers Party's economist promises considerable tax reforms and fourth pillar of pensions in Latvia

Nina Kolyako, BC, Riga, 26.07.2011.Print version
Latvian economist Vjaceslavs Dombrovskis, author of ex-president Valdis Zatlers Reform Party's (ZRP) economic program, promises significant tax reforms and the fourth pillar of pensions.

Vjaceslavs Dombrovskis.

implemented during the next three years.

 

First of all, ZRP proposes reducing labor force taxes by nine percent. The decrease in tax proceeds will be compensated by partially increasing real estate tax and lifting the reduced value-added tax rate. The party also plans to ensure compensation mechanisms for people below the poverty line and combat accepting payments "under the table".

 

ZRP also intends to introduce the "Australian model" in higher education, therefore studies will receive funding from the state's long-term loans, which will then be repaid according to the graduates' income, writes LETA.

 

Dombrovskis also suggests introducing the fourth pillar of pensions. It would not affect current senior citizens, but would grant additional income to pensioners in the future, depending on the social insurance tax their children are paying.

 

The economist admits that ZRP's proposal will not solve all problems in Latvia's pension system, however, it will allow to deal with them in the future.

 

Dombrovskis believes that the current situation can only be improved by increasing Latvia's population, which can be achieved by changing the state's image and increasing productivity.

 

As reported, ZRP was officially established in Riga on July 23.






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