Financial Services, Latvia, Statistics, Taxation

Compared to the first six months of 2017, revenue to the Latvian central government consolidated budget administrated by the State Revenue Service has increased by EUR 466.631 mln or 11.1%. The growth was due to the tax reform and the economic growth.

Nearly a half or 49.5% of the revenue administrated by the State Revenue Service in the first half of this year was revenue from labor taxes. Revenue from the mandatory state social insurance contributions reached EUR 1.516 bln, rising 13.8% from January-June 2017, and was 0.1% above the target. Personal income tax revenue totaled EUR 785.496 mln, down 1.6% year-on-year, and 3.5% short of the target.

Revenue from value-added tax (VAT) accounted for 24% of all revenue administrated by the State Revenue Service and grew 9.4% year-on-year to EUR 1.117 bln but was 3.4% short of the target.

Excise tax revenue was EUR 481.838 mln in the first half of this year or 0.5% above the target.

Revenue from corporate income tax which has been revised in 2018 totaled EUR 280.175 mln, growing 23.4% from the first half of 2017 and rising 26.4% above the target.

The annual tax revenue target for 2018 is EUR 9.287 bln. The revenue target for January-June 2018 is EUR 4.59 bln.