Financial Services, Latvia, Medicine, Taxation

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Health tax of 5% currently being considered that will not increase overall tax burden - Reirs

BC, Riga, 01.07.2020.Print version
A health tax or health insurance in the amount of 5 percent is currently being considered in order to improve Latvia's tax system, Finance Minister Janis Reirs (New Unity) told Latvian Radio said on Wednesday referred LETA.

The minister emphasized that the introduction of health insurance or a health tax of 5% would not change the overall tax burden on labor.


Reirs explained that the health tax would be made up of 1% of social contributions, 2% of the solidarity tax and 2% of personal income tax.


"Everyone must participate in healthcare budgeting, so 3%  of social contributions and 2% of local governments' revenue from personal income tax will go to healthcare. These funds will have to be earmarked as integral part of the health budget," Reirs said.


Another option is ensuring minimum social contributions for those groups of residents to whom special tax regimes apply - microenterprise taxpayers, self-employed, and others, Reirs added.






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