Budget, Financial Services, Latvia, Taxation
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Friday, 29.03.2024, 10:16
Ruling coalition in Latvia agrees on raising social insurance contributions
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.