Budget, Financial Services, Latvia, Taxation

International Internet Magazine. Baltic States news & analytics Friday, 21.06.2024, 16:37

Budget revenue collected by Latvian Revenue Service in 11 months 6.4% short of target

BC, Riga, 15.12.2020.Print version
In the first 11 months of 2020, the State Revenue Service in Latvia collected EUR 8.949 billion in budget revenue, which is 6.4% short of the target, writes LETA, according to the information released by the service.

Compared to the respective period last year, the budget revenue collected by the State Revenue Service decreased by EUR 21.932 million, or 0.2%.

The Revenue Service said that budget revenue fell short of the target because of the measures taken by the government to contain the spread of Covid-19, which caused certain groups of taxpayers to scale down or suspend their business operations. 

Budget revenue generated from value added tax (VAT) fell 3.3% from the first 11 months of last year to EUR 310.048 billion, which is 11.8% short of the target.

Due to the measures introduced to curb the spread of Covid-19, revenue from labor taxes has been falling as well. In the 11 months of 2020, taxes on labor, which made up 53.4% of total revenue, reduced by 2.3% on year to EUR 4.779 billion.

Social security contributions declined 0.8% on year to EUR 3.155 billion, falling 4.5% short of the target. Personal income tax revenue dropped 5.1% on year to 1.624 billion, which was 2.9% above the target.

Excise tax revenue collected in the 11 months of 2020 came to EUR 974.427 million, which is 0.4% less than a year ago and 11.6% below the target.

Meanwhile, collection of corporate income tax increased 4.7 times on year to EUR 187.667 million, but the figure was still 22.8% short of the target.

This year, Latvia's tax revenue is projected at EUR 10.503 billion. The target for the first seven months of this year was EUR 6.009 billion.

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