Financial Services, Insurance, Latvia, Legislation, Markets and Companies, Taxation

According to Straujuma, a healthcare tax could be introduced as part of the state social insurance contributions. The idea of linking up healthcare services with personal income tax payments is nothing new in Latvia – it has been proposed repeatedly, however, due to major objections – never debated.

Straujuma admitted that shadow economy in Latvia has reached alarming proportions, which is why the Finance Ministry should come up with new ideas, as the current policy has not been very efficient.

The politician said that Latvia has a coordination council for solving issues related to shadow economy, however, its work is suspended right now as the government is using its resources to help fund the country's presidency of the Council of the European Union.