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Wednesday 22.11.2017 | Name days: Aldis, Alfons, Aldris

Economic Diary of Latvia. Entrepreneurs to be provided with comprehensive support

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Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUThe European Commission has officially approved the programme of the EU Development and Employment Fund for 2014-2020. As part of this programme, Latvia will be provided funding worth EUR 4.4 billion.

In the next seven years the EC plans to direct the most significant investments towards supporting residents who at risk of becoming poor. EC plans to combat poverty by providing these people education plans, better healthcare and better integration into the job market.

It is also planned to provide support to the reduction of consumption of energy by improving energy efficiency of public and private housing funds, productions and public transport.

Furthermore, it is planned to grow funding for research, development and improvement of cooperation among research facilities and entrepreneurs.

It is planned to invest in the improvement of transport infrastructure, information and telecommunications that directly influence productivity of different economies.

«This programme provides a stable foundation for investments in directions that will bring our country the largest returns and secure better opportunities for growth the next seven years,» – says Latvian Finance Minister Janis Reirs.

Cargo transports to be relieved of tax

Latvian carriers that are active one the global market may be relieved of paying tax on vehicle operation for trucks whose gross weight exceeds 12 tons.

This preferential approach is aimed to reduce the negative impact of Russian sanctions on the industry, the decline of Russia’s economy and the devaluation of the Russian rouble and currencies of CIS countries.

Members of the Saeima Budget-Finance Committee have already approved a legislative initiative in this regard.

«The draft has been submitted for review. However, it is still necessary to wait for the conclusion of the European Commission on this measure,» – explains the head of the parliamentary committee Karlis Sadurskis.

According to authors of this idea, carriers are to be relieved of paying the aforementioned tax for one year, but only if they pay an annual fee for the use of state roads.

This benefit will be made available for owners of cargo transports that clear technical inspection after amendments come into force. This initiative will also apply to trailers and semi-trailers over 10 tons.

Latvian Transport Ministry has estimated that the introduction of this tax relief will lead to a decline of state budget revenue by EUR 600,000.

Green light for green technologies

Investments and Development Agency of Latvia has announced the launch of an open contest for projects as part of the ‘Innovations in green production’ programme.

Victors of the contest will be provided financial support for the procurement of equipment, research endeavours and information transfer to and from partners.

The total amount of funding available during the contest is more than EUR 6.2 million. The maximum amount of money one project can hope to receive ranges within EUR 170,000-EUR 700,000, but within 45% of total costs. Innovations are to be realized before April 30th, 2016.

The contest is being held in order to provide assistance for the introduction of new technologies and products that have the lowest possible impact on the environment. Among the priorities there are areas like the creation of energy-efficient construction materials, clean transports, management of water resources, waste utilization, eco-design and other improvements that would provide more efficient use of energy resources and help reduce the emission of dangerous substances into the atmosphere.

New package of government support

Latvian exporters will be able to use European Funds to cover most of the costs for production certification and certification of certain products in order to enter new markets.

The matter regarding support for exporters has been identified as a priority for the government after Russia introduced a ban on agricultural goods from Europe.

This October, Latvian government allocated an additional EUR 7 million to help cover costs caused by the Russian embargo. This includes certification expenses.

Therefore, if entrepreneurs require approval from specific authorities in countries they wish to work in, they will be able to cover up to 70% of costs suing money from European Funds, but no more than EUR 25,000 per year.

The list of compensated services includes those provided by certificate centres, independent experts or other institutions that confirm compliance of different goods or services with requirements in specific countries.

Latvian architects end up in the spotlight

Latvian architects agency United Riga Architect has won in an open contest for the development of architectural decoration of an underground metro station in Moscow.

Latvian architects managed to upstage a number of highly professional competitors: the jury selected 10 best offers from nearly 50 different options. The final winner was decided by a vote by residents.

According to Deputy Mayor of Moscow Marat Husnullin, the contest for the architectural design of one of the underground metro stations in Moscow was organized for the first time since the 1950’s. The station is planned to be completed before 2017.


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Ministry considers reorganizing Latvian Environmental Protection Fund’s administration

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European Parliament triggers punitive procedure against Poland

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Wage rules violations most often associated with envelope wages

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Management of Unity’s Saeima faction to change in December

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