Budget, Financial Services, Latvia, Taxation

International Internet Magazine. Baltic States news & analytics Wednesday, 23.08.2017, 18:42

Ruling coalition in Latvia agrees on raising social insurance contributions

BC, Riga, 15.06.2017.Print version
The Latvian ruling coalition partners today reached an agreement on raising mandatory social insurance contributions, while further discussions will be held on progressivity of the personal income tax, Prime Minister Maris Kucinskis (Greens/Farmers) told LETA after the coalition meeting.

The coalition partners have complete agreement on health care sector and discussions on tax reform are on a final phase, said Kucinskis.


Social insurance contributions will be raised in order to raise financing for the health care sector. It is planned that the social insurance contributions will be raised by 1 percentage age point – 0.5 % for contributions paid by employers, and 0.5 for employees. A special payment might be set for those people who do not pay social tax. The partners have not discussed the size of this payment, but it might be tied to the average wage.


Partners still expect Finance Ministry’s calculations in relation to progressivity of personal income tax in order to continue discussion on this matter. The partners agreed that the budget deficit should not be affected.


Health Minister Anda Caksa said that the minimum health care service basket will also include services of family physicians.






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