Budget, Financial Services, Latvia, Taxation

Compared to January 2017, though, tax collections grew by 5.9% or 41.51 million in January 2018.

The government basic budget received EUR 353.883 million in taxes in January this year, or 93.6% of the planned EUR 378.266 million, which means that these tax collections fell 6.4% short of the January target.

The steepest increase was achieved in taxes on labor, representatives of the Revenue Service said.

Social security contributions provided EUR 236.74 million in January, or 101.2% of the target, which had been set at EUR 234.04 million.

Collection of personal income tax brought EUR 143.29 million to the budget (including local governments’ budgets), or 103.8% of the planned amount, which was EUR 138 million.

The Revenue Service said that in January 2018 tax revenue fell short of the target primarily because of a reduction of VAT revenue by EUR 6.15 million, or 2.9% from January 2017.

In January 2018, VAT revenue came to EUR 204.376 million, which was 92% of the planned EUR 222.2 million.

According to Latvia’s tax revenue plan for 2018, the Revenue Service is expected to collect EUR 9.287 billion in taxes this year, which would be a 7.7% increase against 2017. In January, the Revenue Service was supposed to collect EUR 758.266 million.

As reported, the Revenue Service collected EUR 8.62 billion in taxes in 2017, which was EUR 0.6 billion or 7.5% more than a year before and 1.1% above the target.