Latvia hopes to lower tax loading

02.05.2012

The Minister of Finance of Latvia declared that the rate of the VAT can be lowered from 22 % to 21 % but on condition that it will be possible to agree with businessmen that the reduction in tax will be reflected also on prices in shops.

In opinion Vilksa without it’s no use to reduce the VAT without this agreement. It’s not a secret, a rate of this type of tax in Latvia is the highest among the Baltic States.

Since January 1 of next year the income tax from 25 % also can be lowered to 24 %. Further it is planned to reduce it faster rates – for 2 % a year. There is no saying, maybe income tax really can be lowered to 20 % in 3 years. 

Expert’s opinion

«Latvia heads for decrease in tax loading and if income tax from the population really in the near future will make 20 %, it will be the lowest rate for Latvia in the history. Decrease in income tax will increase a purse of each Latvian in a year by some hundred lats.»

On the basis: http://www.lnt.lv

Andrianova Irina ( the leading lawyer of legal support and banking consulting department of Honest & Bright )