Financial Services, Latvia, Taxation

Both Abotina and Unity chairman Andris Piebalgs, however, affirmed Unity’s support for the Kucinskis-led government.

Kucinskis said that the draft tax reform plan will not be removed from the agenda of Wednesday’s government meeting, but that its adoption requires the coalition’s support. The prime minister said he needed more clarity about Unity’s position on the issue.

As reported, Kucinskis said on Latvian Television this morning that his Cabinet will approve the tax reform plan this week to avoid questions about the government’s stability, although debates on some tax proposals are expected to continue.

Asked what will happen if the government fails to agree on some of the tax reform’s aspects and whether the government has a plan B for such a situation, the prime minister said that there is no such plan and that the government is determined to approve the tax plan in order to prevent speculations about its stability.

“I have been in politics long enough and I know what happens when the government fails to agree on issues concerning taxes and the budget,” Kucinskis said, reiterating at the same time that this time adopting the tax reform package is paramount and that uncertain questions can be debated later.

Unity party today inquired Kucinskis about the planned tax reforms as the party sought clarification on several unanswered questions.

As reported, the Finance Ministry has sent its draft plan for tax reforms to ministries and partners for review. The Finance Ministry sent the blueprint of the national tax policy framework 2018-2021 to all line ministries, as well as social and other partners. Although originally the government was expected to decide on the reform plan last week, the decision was put off until May 3 because of Unity’s objections.