Latviski English По-русски
Sunday 19.11.2017 | Name days: Liza, Līze, Elizabete, Betija

Economic Diary of Latvia. Harder to dodge taxes now

(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUOn the eve of putting down his duties as Finance Minister of Latvia Andris Vilks signed a multilateral agreement on international automatic exchange of information regarding financial accounts.

Experts have already described this event as refusal of banking secrets and a gigantic step toward obliterating tax oases.

Based on this agreement, tax institutions will automatically exchange information about residents’ bank accounts, including information regarding beneficiaries, interest payments, dividends, account balance, income from insurance products, interest from financial deposits, etc. The exchange of information will include legal persons and private persons. The first exchange of information will take place September 2017.

This document was signed during a global forum of OECD in Berlin October 29th. It is dedicated to transparency and exchange of information for better tax administration.

«The signing of this declaration is a step toward reducing shadow economy in cooperation with other countries. It is also brings Latvia one step closer to becoming a member of OECD,» – said Andris Vilks.

Everything is according to schedule

Meanwhile in Latvia, in spite of slower economic growth, budget revenue from taxes is above last year’s indexes, as reported by Latvian Finance Ministry.

In particular, revenue of the consolidated budget for the nine months of 2014 has grown by 1.4% (EUR 88.1 million) in comparison with last year. General tax revenue has increased 4% (EUR 189.7 million).

Experts explain better results with positive results of measures aimed to combat shadow economy. The campaign to control and check car service stations is mentioned as an example. Following this campaign, wages in this sector increased by nearly EUR 500,000 this August.

Revenue growth of the state consolidated budget was largely possible because of increased administration of PIT – the increase was 8.5%. This trend is explained with increased administration with reduced payments, part of which were carried out in December 2013. At the same time, a notable increase in the administration of real estate property tax was noted in consolidated budget of municipalities – 9.3% or EUR 13 million. Indexes have improved thanks to increased cadastral value and timely payment of the tax.

Minimal wages may be increased

One of the most direct promises of Prime Minister Laimdota Straujuma’s government is the plan to increase minimal wages by EUR 40 next year. The current set minimal wage is EUR 320 in Latvia.

The government’s declaration also mentions that this growth will continue next week.

Starting with 2016 the government plans to introduce tax-free allowance, increasing it for recipients of small wages and maintaining it for people with higher income. The mechanism will not be applied to large salaries at all.

The government also promises to increase benefits for dependants. Among other things, the Cabinet of Ministers plans to resolve the problems of long-term and regional unemployment by supporting employment in risk groups. The government is certain programmes for requalification of unemployed persons have to be coordinated with needs of the national economy and training should be carried out at specific enterprises.

Life is becoming better in Latvia

The car market, which is considered the reflection of a country’s state of economy, is reported to have an increase in activity.

According to CSDD, a total of 52,939 lightweight cars have undergone first registration in Latvia in the first nine months of 2014, which is 12.7% more than in the same period of 2013.

7,521 trucks have been registered in Latvia this year (+0.3% more than in 2013), 345 buses (-8.7%), 1,930 motorcycles and tricycles (+21.2%), 171 quadricycles (+33.6%) and 4,874 trailers and semi-trailers (-7.3%).

A total of 69,561 vehicles have been registered in Latvia in the first nine months of 2014, which is 8.8% more than in the same period of 2013.

In order to make sure there is a surface for vehicles to drive on, Transport Ministry has calculated that the total funding for roads may reach EUR 357 million in 2015. The ministry has also submitted a request to the government to allocate an additional EUR 47.9 million for repairs of regional and local roads. If funding is allocated, repairs will be carried out in 46 locations, and if not, repairs will be carried out only in 7 locations.


Leave a reply

NAF: Russia’s attitude remains unfriendly towards Latvia

So far Russia’s demonstrated attitude has remained unfriendly towards Latvia, said Commander of Latvian Armed Forces Leonīds Kalniņš in an interview to LNT.

Lembergs’ turn to testify before parliamentary committee has come

Aivars Lembergs, who is accused of serious crimes and is suspended from performing duties as chairman of Ventspils City Council, has been invited to come to a meeting of the Saeima’s Investigative Committee and answer questions associated with so-called oligarchs case.

How Latvian communities around the world plan to celebrate Latvia’s birthday?

«Celebration of independence of the Republic of Latvia is an important tradition that allows members of Latvia’s diaspora to maintain ties with their homeland – this year’s event will be even more expansive and inclusive than ever before. This is because events associated with the country’s hundredth birthday will be organized all around the world,» says manager of World Federation of Free Latvians office in Latvia Jānis Andersons.

European Parliament triggers punitive procedure against Poland

Members of the European Parliament have passed a resolution requesting for the application of the so-called «nuclear option» for Poland, Article 7 of the EU Treaty, because of the threat to the rule of law in the biggest Eastern European country.

Wage rules violations most often associated with envelope wages

To promote public awareness and improve commercial environment, honest competition and honest compliance with taxes, Latvia’s State Revenue Service intends to expand its database with new information about taxpayers, BNN was told by SRS.

Management of Unity’s Saeima faction to change in December

«Political consultations with all of Unity’s partner parties that are represented in the Saeima’s faction have concluded. An agreement has been reached to perform management change before the end of Saeima’s autumn session – around 21 December,» says Unity’s chairman Arvils Ašeradens.

EP prepared to commence talks with EU governments on reforming asylum system

The European Parliament is prepared to commence talks about reforming Dublin Regulation to ensure every member state is able to resettle a portion of asylum seekers.

Estonia to pour into Finnish-Estonian cultural fund 700 000 euros

Estonian cabinet of ministers has decided to attribute 700,000 euros to the Finno-Estonian Cultural Fund, an organisation working since 2015 aimed at fostering cooperation between the two states in culture, creative economy and training both for individuals and organizations.

Russia in UN vetoes extension of Syrian chemical attack investigation

At the UN Security Council, Russia has used its veto powers to block a resolution with which it would be allowed to continue the international investigation into a chemical attack this spring in Syria, which prompted the U.S. to launch missile strikes on a Syrian airbase.

Latvia’s birthday expected to be windy

A precipitation zone will reach Latvia from the west on Friday, 17 November. The precipitation zone will, however, pass over Latvia quickly, making rainfall short and periods of clear sky more frequent and longer. Air temperature is expected to stay within +5° C… +8° C, as reported by State Environment, Geology and Meteorology Centre.

State of emergency in force in flood-hit Greece

Rescue services in Greece are looking for no less than five people, who have gone missing following unexpected and disastrous floods on Wednesday, November 15, that killed 15 people; however, bad weather is still expected.

Laupīšanas 101 director: Latvia’s film industry has yet to reach its potential height

There is sufficient evidence to prove that Latvia’s film industry is capable, but at the same time many films are directed basically the same way. There is a lack of creativity, which means very slow development for the industry, said Kaspars Marhlevičs, director of short comedy Laupīšanas 101, in an interview to BNN.

Medical cannabis bill paves way in Lithuanian legislature

Otherwise conservative Lithuania has made a big stride forward legalising cannabis for medical use with 92 Lithuanian parliamentarians voting Thursday, November 15, to open the bill draft on medication containing cannabis. The law draft should go back to the parliamentary floor for deliberations on December 12.

Latvian sentenced to ten years in prison for fighting on the side of ISIS in Syria

On Thursday, 16 November, Latvian citizen Mārtiņš Grīnbergs was sentenced by Riga Regional Court to ten years and three months in prison for fighting on the side of Islamic State terrorist organization.

European Parliament: Africa’s development requires a new stimulus

To resolve economic, social and migration-related problems, which usually accompany lasting crises, better African-EU cooperation is needed, European Parliament members say.

Latvian Chamber for Commerce and Industry proposes preventing new MPC reforms

Increase of mandatory procurement components cannot be allowed. Exactly the opposite – this cost should be dropped entirely for end electricity prices in an attempt to improve international competitiveness of companies, BNN was told by council members of Latvian Chamber for Commerce and Industry.

Matīss: LDz cannot raise tariffs and perform rail electrification under cargo anti-record

Because Latvijas dzelzceļš has set an anti-record in cargo transports in the first ten months of this year, Saeima deputy and member of the National Economy Committee Anrijs Matīss says raising the fee for the use of infrastructure cannot be allowed. He adds that the intended railway electrification project should be considered very carefully.

Lithuania and Latvia placed in top 10 in climate policy index

In the annual Climate Change Performance Index, where climate policy action in 57 countries has been evaluated, on a scale from «very high» to «very low», 11 EU member states have been evaluated with as having been highly active, with Sweden showing the best results ahead of Lithuania, the UK, Finland and Latvia.

Bite Latvija buys Stream Networks and Latnet

Mobile commutations operator Bite Latvija has signed a purchase agreement for 100% of shares of Stream Networks and its subsidiary Latner Serviss, as BNN was informed by Bite manager in Latvia Kaspars Buls.

airBaltic carried three million passengers in first ten months of 2017

In the first ten months of 2017, airBaltic carried a total of 3,007,034 passengers to destinations in Europe, Scandinavia, Russia, CIS and the Middle East, BNN was told by the company.

Kaljulaid sees African opportunities to outplace EU in digitalisation

During a visit to Ethiopia, Estonian President Kersti Kaljulaid has discussed African-EU relations with the African Commissioner for Trade and Industry and recommended investing into digital development that would be beneficial for the continent itself.

Most employed people in Latvia are satisfied with their jobs

More and more often employers experience lack of qualified labour force, as well as increase of employees’ confidence about their competitiveness on the labour market and their openness for better job offers.

Estonian railways operator happy about increasing freight volume

Freight carried on the infrastructure of the Estonian state railway company Estonian Railways in October amounted to one million tons, which is a 10.4% hike compared to October 2016.

European Parliament: rule of law in Malta should be monitored more closely

Malta should strengthen the rule of law and the European Commission should follow the situation in the country more closely to ensure objective protection of rights, members of the European Parliament say.

Greece hit by sudden, disastrous floods

Towns in central Greece have suffered severe damages as unexpectedly heavy rain caused floods on Wednesday, November 15, taking the lives of no less than 15 people.

Newest comments