Financial Services, Latvia, Legislation, Taxation
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Friday, 26.04.2024, 01:46
Government of Latvia approves progressive income tax and reducing minimum wage and tax-exempt wage levels
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The government decided that progressive income tax would be introduced next year, the Finance Ministry will specify by Thursday how transition to the new system will be executed.
This year yet, the tax-exempt minimum income will be reduced from LVL 90 to LVL 45 a month, and minimum monthly wage from LVL 180 to LVL 140.
Prime Minister Valdis Dombrovskis (New Era) said that, contrary to rumors circulating in Latvia, pensions will not be cut. Nevertheless, the Welfare Ministry in conjunction with the Pensioners' Federation will have to agree by Thursday on proposals to reduce social budget by LVL 35 million.
Co-financing for projects co-funded with money from European Union funds will not be cut, said the premier.
Spending on salaries in the public sector will be reduced LVL 120 million.
The government will have an extraordinary meeting on Thursday, June 11, to consider amendments to the budget.
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