Budget, Financial Services, Latvia, Taxation

''This would not be fair to tax payers, that they have to go through yet another change in the tax policy. There is chaos everytime we make changes to the tax system,'' he said, adding that this includes within the State Revenue Service.

According to the prime minister, an end must be put to all this chaos, and instead the government must work on what can be improve within the tax system. He believes that the tax system cannot be changed just so to increase budget revenue and to allocate additional financing.

''What I am saying is not supported by all within the government at the moment. This is one of the battles we are having. I believe we have an opportunity to show a new type of politics. We have new political parties that have come into power, who previously preached that the politics of old must be forgotten, meaning that we cannot just continue raising taxes and allocating this additional financing,'' the PM said.

The prime minister called on the government to be more thoughtful in its actions and fair towards tax payers. He said that the government should work to make the tax system fairer, as fair taxes are one of the pre-conditions in combating the shadow economy.

Karins added that there are ''many good ideas'' on how to improve the tax system from 2021, and that this will be discussed once the 2020 budget is approved.

''I am prepared to compromise, but I also expect our partners in the government to compromise as well,'' Karins said.