Financial Services, Latvia, Taxation

The document says that the government will ensure a predictable tax policy that helps to reach the state strategic goals and meets the state fiscal needs.

“By actively engaging social and cooperation partners, we will in due time prepare and approve the next medium-term tax policy guidelines,” the government action plan provides.

The government by May 2020 also plans to prepare an assessment on the impact of tax policy on different groups of resident with different levels of income in order to identify whether the measures have ensured reduction of inequality of income.

The government has resolved to continue transferring taxes from labor to indirect taxes, raising the minimum wage and nearing the non-taxable minimum income to the minimum wage, as well as simplifying taxes.

As reported, Prime Minister Krisjanis Karins said at the government extraordinary meeting today that the implementation of the government’s action plan requires EUR 1 bn which the government does not have right now.