Financial Services, Latvia, Taxation
International Internet Magazine. Baltic States news & analytics
Wednesday, 24.04.2024, 11:29
Tax revenue to Latvian budget in 2016 meets target by 101.1%
Compared to 2015, revenue to the consolidated budget
increased 7.3% or EUR 544.1 mln in 2016 which is the steepest growth in the
last four years (5.5% in 2013, 3.7% in 2014 and 5.4% in 2015).
The actual revenue administrated by the State Revenue
Service in 2016 reached EUR 8.015 bln while the target was EUR 7.926 bln.
Revenue to the central government basic budget met the
target by 102.5% and was EUR 3.933 mln.
The largest amount was collected in value added tax – EUR
2.019 bln which is equal to 99.7% of the planned amount.
Excise tax revenue was EUR 861.01 mln or 104.8% of the
planned amount.
Revenue from corporate income tax in 2016 totaled EUR 419.7 mln,
or 105.7% of the target.
Revenues from social insurance contributions were collected
at 100.4% of the target and totaled EUR 2.544 bln.
Personal income tax revenue (including to the local
government basic budget) totaled EUR 1.52 bln which is equal to 99.3% of the
target. This is the lowest performance rate compared to other types of taxes.
The State Revenue Service said it could be explained mostly by the increased
activity of people in claiming tax refunds on expenses for education, medical
services etc. The amount of personal income tax refunds paid in 2016 was EUR
92.54 mln or by 24.4% more than in 2015.
The largest increase in terms of money was recorded for
mandatory state social insurance contributions - by EUR 175.61 mln or 7.4%. The
State Revenue Service said the increase was due to the solidarity tax introduced
in 2016 on salaries larger than EUR 48,600 annually and paid into the same
account as the state social insurance contributions and also due to overall
increase in wages and salaries.