Financial Services, Latvia, Taxation

Saeima member Atis Zakatistovs (KPV LV), who will be chairing the committee, told members of the Saeima Budget and Finance (Taxation) Committee today that the Development Committee would meet every other Monday, starting May 20, for discussions on tax reform.

Saeima member Igors Pimenovs (Harmony) asked about the opposition’s possible involvement in this work, as well as proposed setting up a tax policy subcommittee. Zakatistovs said that the tax policy subcommittee would be a useful tool, especially when it comes to discussions with businesses. He described the Development Committee as coalition parties’ coordination tool for finding common ground on certain matters.

As reported, Prime Minister Krisjanis Karins’ (New Unity) government is not planning immediate changes to the tax policy adopted by the government of Latvia’s previous Prime Minister Maris Kucinskis (Greens/Farmers).

Finance Minister Janis Reirs (New Unity) said in an earlier interview to LETA that all coalition partners have agreed on the position that tax changes could be made once in four years, which is the term of government and parliament.

“Such an approach should be adopted in order to prevent the situation where taxes are suddenly changed whenever the budget runs out of money. The prime minister also stresses the importance of continuity, namely, that we assume the previous government’s commitments concerning the budget and taxes. We will therefore give the tax reform launched by the previous government three years and assess it later,” the minister said.

The government plans to start discussions on possible tax changes with social partners and entrepreneurs’ organizations in 2020.