bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Monday 21.08.2017 | Name days: Linda, Janīna
LatviaLatvia

Economic Diary. Government to create a “jug” for investors

FaceBook
Twitter
Draugiem
print
(+1 rating, 1 votes)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RULatvia has officially entered a negotiations phase with Organisation for Economic Co-operation and Development, also known as the rich countries club. This process may take up to two years. According to Prime Minister Valdis Dombrovskis, this is more than enough for Latvia.

Latvia joins the rich

What kind of activities will be accompanying this process these next two years? First of all, Latvia’s authorities will need to submit a memorandum that would present the country’s position in regard to 250 legal mechanisms of the organisation. This will be followed up by a series of technical information collection missions. Representatives of this organisation will gather information about such areas of economy as – bribery, investments, international business transactions, corporate governance, financial markets, insurance and private pensions, competition, taxes, environment, chemicals, public management, regulatory policy, statistics, economics, education, employment, labour and Social Affairs, health, trade and export credits, fisheries, science and technology, IT and communications, and policies of consumer rights protection.

Latvia’s Prime Minister Valdis Dombrovskis allows for the possibility of inspectors finding elements in Latvia’s legislation that will need to be changed.

Latvia had received the invitation to begin negotiations this May. There are 34 countries currently holding membership in OECD. The man goals of OECD include the development of recommendations regarding state regulations and approaches to resolving all kinds of economic, social and ecological problems.

The last time OECD expanded to another country was in 2007: green light was given to Estonia, Slovenia, Israel, Chile and Russia. Aside from Latvia, OECD will launch negotiations with Columbia this year.

Membership in this club is not free of charge. Members of the bloc need to make annual contributions. Mount of contributions depends on a country’s GDP and is calculated as percentage of the organisation’s budget. Latvia’s amount has yet to be calculated.

Tax rate subject to review

The launch of negotiations with this influential organisation does not mean Latvian officials can avoid “dirty work” back home. Economy Ministry has prepared proposals on the planned increase of MET. This tax is meant for firms that hold status of micro-enterprises. It replaces multiple taxes (PIT and corporate income tax, social insurance fee and venture risk). The 9% rate of MET was introduced during the crisis to encourage entrepreneurship.

The ministry’s plan provides for retaining the 9% rate for entrepreneurs whose annual turnover does not exceed EUR 15,000. If annual turnover exceeds 15,000, entrepreneurs are to pay 10%. Those companies that have annual turnover above 70,000 will need to pay 12%.

According to the State Revenue Service (SRS), there were 30.1 thousand micro-enterprises registered in Latvia at the beginning of September.

State Revenue Service to go to the people

As for SRS itself – it has decided to become closer to the people. This will be done to the extent of resident being allowed to submit declarations at stores, as reported by acting head of SRS Inara Petersone.

Discussions have been launched with Healthcare Ministry and Education Ministry. Discussions cover recommendations how to make information submission as easy as possible.

Furthermore, declaration submission, consultation or information can be requested at Maxima and Rimi stores. According to Petersone, this will be provided by putting special mini-branches of SRS in Maxima and Rimi supermarkets. It is planned to test this innovative approach with a couple of supermarkets. If everything goes well, such branches will be opened across the whole country.

Give the country some money

Foreigners who would like to receive residence permits in Latvia in exchange for investments could have a tougher time acquiring the former. This week, Saeima approved a new regulation of the so-called investor visa. One of its most important aspects will be the creation of the Economic Development Fund. This institution will be used to fund different entrepreneurship support projects.

Wealthy citizens of CIS and China (the majority of participants of the investor visa programme) have the right to receive residence permits in Latvia by purchasing real estate property or by investing money in a Latvian company.

According to the official version, this new regulation will allow relocating some part of these funds into real economy. This can be achieved by two methods. The first method involves the increase of direct investments of participants of the programme into enterprises’ main capital. The second method includes the use of the Economic Development Fund: its creation is already stated in amendments developed by Economy Ministry.

Several sources will fill this “jug”. Starting with January 1, 2014, foreigners who submit applications for residence permits after buying real estate property will also be required to donate EUR 25,000 to this fund. Another option is to donate EUR 50,000 directly to this fund without any additional requests.

According to Economy Ministry, the funds that will be added to this fund will be made available for the state budget. While the coalition was looking for a compromise, the plan lost its shape. Currently, amendments submitted for the first review state that the money of the fund will be made available to the state budget via State Treasury’s special budget. These funds are to be managed by Economy Ministry, unless the Saeima decides otherwise. In reality, this money can be spent on anything.

Ref: 017.109.109.9386


Leave a reply

Terrorists in Barcelona were planning three explosions

Terrorists, who performed two attacks in Catalonia last week, were initially planning to blow up three shuttle buses in crowded areas in Barcelona, as reported by El Espano.

Lawyer: Maxima wants to earn by reducing compensations for the tragedy

Maxima Latvija and Zolitude 21.11 have reached an agreement on payment of EUR 900,000 to support victims of Zolitude tragedy – EUR 5,000 to EUR 75,000 to each person, as reported by Maxima Latvija.

Producer prices in industry in Latvia grew 0.4% in July

Compared to June, the level of producer prices in Latvian industry rose by 0.4 % in July 2017. The prices of products sold on the domestic market increased by 0.5 %, whereas the prices of exported products grew by 0.3 %.

Enefit: Latvia reduces electricity price difference with neighbouring countries

In recent years, Latvia has managed to reduce the electricity price difference with other Baltic neighbouring countries, as reported by Enefit Chairman Janis Bethers.

Farmers Saeima: butter price will not remain high for long

The high price on butter in Latvia will not remain so high for long, said Farmers Saeima Vice-Chairperson Maira Dzelzkaleja-Burmistre in an interview to 900 seconds programme of LNT.

Aseradens elected as chairman of Unity; Krisjanis Karins to lead party’s city council faction

Unity elected Economy Minister Arvils Aseradens as the new chairman of the party. MEP Krisjanis Karins has been elected as the party’s leader in Riga City Council with Santa Zarane as his deputy.

LPS manager: forming the budget, it is important for municipal funding to stay the same

In the formation process of the next year’s state budget, it is necessary to guarantee finances do not reduce for municipalities, said the chairman of Latvian Association of Local and Regional Governments Gints Kaminskis in an interview to Latvijas Radio.

Police to organize inspections in stores; parents asked to watch their children as well

For the new school year, Riga Municipal Police will be performing regular inspections at stores, bars and cafes from 21 August to 31 August, as well as the first days of September, to make sure minors are not sold alcohol and tobacco products, BNN was told by police.

Colder masses of air to enter Latvia this week; more rain expected

This week’s weather in Latvia will be dictated by a cyclone hovering above Northern Europe. Colder masses of air will flow into the country. A lot of rain is expected in Latvia this week, as reported by State Environment, Geology and Meteorology Centre.

Kirsis asks police to assess possible forging of votes at Riga City Council

Riga City Council’s Unity faction chairman Vilnis Kirsis has asked State Police to check if the city council’s electronic voting system was used without another deputy’s knowledge or consent, said the politician.

Expert: attack in Spain shows how terrorists switched to more easily reachable targets

Terrorist attacks that transpired in Spain this week shows how terrorists have switched to more easily reachable targets, where security requirements are not as strict, says Latvian National Defence Academy’s Security and Strategic Research Centre researcher Martins Hirss.

New mandatory tests in schools to be introduced four years from now

In four years’ time – 2021/2022 school year – it is planned to introduce completely new mandatory tests in schools, as reported by State Education Content Centre Director Guntars Catlaks.

Nearly 9,000 children and their parents got homes thanks to state support programme

In the first half-year of 2017, state support helped 1,527 families in Latvia to buy homes. Compared with last year, families’ demand for state support has grown 6%, as reported by Altum finance institute.

Prediction: Aseradens will likely take control over Unity

Economy Minister Arvils Aseradens will become the head of Unity, Betsafe bookmakers predict. The possibility of Aseradens becoming the head of the party is given 45% probability by Betsafe.

Provisional estimate for next year’s fiscal space in Latvia is EUR 60 million

Next year’s fiscal space has been estimated at EUR 60 million, as noted by Finance Minister Dana Reizniece-Ozola, adding that a more precise estimate will be available at the end of August.

Reconstruction of Vilnius airport runway concludes; aircraft return to Vilnius

On Thursday, 17 August, Vilnius airport’s runway was festively opened. This was the most massive reconstruction for the airport in the past 20 years. It was a unique project for Lithuania and all of Europe, airport representatives say.

Islamic State terrorist group takes responsibility for Barcelona attack

The recent terrorist attack in Barcelona, in which a shuttle bus rammed a crowd of people on La Rambla, killing 13 and injuring at least 100, has become this week’s topic.

Weather in Latvia to be warm but rainy on weekends

The sun will appear every now and then between clouds on Friday, 18 August. Still, some rain is expected, especially in the afternoon in Latvia’s eastern regions, where thunderstorms may appear. Rain is expected to reach the capital in the afternoon. Wind will draw in from the south. Air temperature will reach +21° C… +26° C, according to State Environment, Geology and Meteorology Centre.

Latvia’s export growth was moderately rapid in the first six months of 2017

Compared with the same period of 2016, Latvia experienced a moderately rapid export growth in the first six months of 2017, according to data published by Eurostat on Thursday, 17 August.

Latvia’s annual inflation in July was one of the highest in Europe

Inflation indexes in Latvia and the UK both reached 2.6% in July, which is one of the highest indexes in the European Union, according to data published by Eurostat on Thursday, 17 August.

Kirsis withdraws his candidacy in favour of Aseradens

Riga City Council member Vilnis Kirsis has decided to withdraw his candidacy from the race to become chairman of Unity in favour of a different candidate – Economy Minister Arvils Aseradens.

Rinkevics expresses Latvia’s interest in maintaining political consultations with Palestine

On Thursday, 17 August, Latvia’s Foreign Affairs Minister Edgars Rinkevics met with the leader of Palestine’s diplomatic mission in Latvia, ambassador Taissir Al Adjouri, to discuss mutual relations between Latvia and Palestine and the peace process in the Middle East.

Putin grins to the world’s seven billionth baby, Lithuania wary of border incidents

Russian President Vladimir Putin paid a visit this Wednesday to Kaliningrad, the westernmost point of Russia, but the reports about his trip in the Russian enclave and over the border in Lithuania were strikingly different.

Survey: red considered the safest colour for a car

Most Latvian drivers consider red to be the safest colour for a car. The most popular, however, is black, according to results of a survey by Virši-A fuel trader.

airBaltic’s number of carried passengers reaches a record in second consecutive month

Latvian airBaltic airline carried 393,312 passengers in July 2017, which is 21% more than the same period last year. The number of passengers carried by airBaltic remains the highest it has ever been in the airline’s history, BNN was informed by the company.

Newest comments