Financial Services, Latvia, Taxation, Technology, Telecomunications

According to the newspaper "Dienas Bizness", Lattelecom have sent a letter to Prime Minister Valdis Dombrovskis (New Era), Finance Minister Einars Repse (New Era) and other officials expressing their concern that one of the main tax incentives – EIT discounts for major investments over LVL 10 million – is only aimed at a narrow field and neglects the ICT industry, writes LETA.

A similar letter of concern has been sent to state officials by the Latvian Information and Communications Technology Association (LICTA). The association's head Signe Balina stressed to the newspaper that it should not be forgotten that ICT is one of the state's defined priority industries, and the association therefore urges that EIT discounts should be applied equally to major investments in all economic areas in order to ensure a transparent discount policy and the strengthening of the Latvian economy.

A recent meeting of state secretaries examined amendments to the Law on Enterprise Income Tax providing for EIT discounts for certain spheres in need of support, not including ICT.

Already in November last year the Economy Ministry defined ICT as one of the priority areas for medium-term economic recovery, reminded Lattelecom Chairman Juris Gulbis, adding that the exclusion of ICT from the tax discount policy would be absurd given the potential for growth presented by investments in this sector.

"The ICT sector is one of the most active in Latvia, with sharp competition and rapid technological development," stressed Tele2 Chairman Valdis Vancovics, explaining that investments in the sector were necessary in order to maintain the momentum of this development. Vancovics also noted that there was a distinct parallel between the prosperity of the state and the level of development of IT infrastructure.