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International Internet Magazine. Baltic States news & analytics Thursday, 21.09.2017, 22:32

Solidarity tax revenues in Latvia to be spent on health care, social security

BC, Riga, 12.07.2017.Print version
From now on, budget revenue from the so-called social tax, which is charged on high salaries, will be used to finance health care and social security, according to draft amendments to the Solidarity Tax Law, approved on July 11th by the Cabinet of Ministers in Latvia, informs LETA.

Representatives of the Finance Ministry said that instead of abolishing the solidarity tax, the government has decided to transform it in order to provide the necessary financing for health care.

 

Under the draft amendments to the Solidarity Tax Law, one percentage point of the solidarity tax revenues will be spent on health care financing and six percentage points will be added socially insured persons' pension capital.

 

Also, 10.5 percentage points of the solidarity tax revenues will be paid into the personal income tax account. The remaining part of the solidarity tax revenues will be paid into the pensions special budget.

 

As reported, the Cabinet of Ministers today is revising the remaining bills related to tax reform – amendments to the Law on Personal Income Tax, the Law on Solidarity Tax, the Law on Excise Tax, the Law on State Social Insurance, the Law on Corporate Income Tax, and Micro Enterprise Tax Law.

 

After the government adopts the amendments, they will be sent to Saeima who might adopt the bills in the second reading on July 21.






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