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Saeima passes bill on creation of Latgale Special Economic Zone

BC, Riga, 19.05.2016.Print version
Saeima on Thursday passed in the final reading a bill paving the way for the creation of a special economic zone (SEZ) in Latvia's least develop region Latgale, informs LETA.

Under the bill drawn up by the Ministry for Environmental Protection and Regional Development, the Latgale SEZ is to be established to facilitate development of Latgale province by attracting investments for development of production and infrastructure and creation of new jobs.

 

An expanded special economic zone in Latgale is an appropriate solution to improve the economic situation in the province, the ministry said.

 

The Latgale SEZ can comprise both public and private properties but privately-owned land may not exceed 30 percent of the total SEZ territory. A number of criteria have been listed to identify the territories eligible to the SEZ status, including ownership, existing infrastructure, planned investment in infrastructure development and expected benefits from the SEZ status.

 

The right to determine the territory of the Latgale SEZ will be delegated to the Cabinet of Ministers, but the ministry has prepared a preliminary list of the regions that could be included in the new SEZ. The total area of the Latgale province is 14,549 square kilometers but the maximum size of the Latgale SEZ will be restricted to 5 percent of this total or 727.45 square kilometers.

 

The preliminary list comprises 17 regions and the Daugavpils city. The new law will not apply to Rezekne, another large city in eastern Latvia, because it already has a special economic zone of its own.

 

The bill says that companies operating in the Latgale SEZ will be eligible to the discounts on direct taxes under the law on taxation in free ports and special economic zones.

 

It is planned that the Latgale SEZ will exist until December 31, 2035.

 

The new law is expected to take effect next year.






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