Financial Services, Latvia, Legislation, Taxation
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Tuesday, 09.06.2026, 05:53
Latvian president approves of government's tax cuts
Alla Petrova, BC, Riga, 16.05.2012.
Print version
Print versionLatvian President Andris Berzins positively assesses the government's decision to reduce personal income tax and value added tax (VAT) rates, as Berzins said in an interview with the Latvian State Television this morning.
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| Andris Berzins. BC's photo. |
Berzins pointed out that the taxes will be harmonized and that is a very normal process.
Commenting the recent objections to the planned VAT reduction and calls to reduce the VAT rate on energy resources, Berzins emphasized that Latvia's use of energy resources and its relation to GDP is huge, therefore it is necessary to consider reducing energy consumption, not the applicable VAT rate, writes LETA.
As reported, yesterday, the government agreed that the value added tax rate would be reduced one percentage point on July 1 this year, from the current 22% to 21%, whereas personal income tax will be reduced five percentage points in the next three years, from the current 25% to 20%. However, the final decision will be up to Saeima.
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