Latviski English По-русски
Tuesday 22.08.2017 | Name days: Rudīte, Everts

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

Latvia to procure Stinger anti-air missile launchers

A mutual contract has been signed between Latvian Defence Ministry and Danish Defence Ministry for the procurement of anti-air missile launchers used by the Danish armed forces, as confirmed by Latvian Defence Ministry.

Oil prices and stock exchange indexes decline in Europe

On Monday, 21 August, oil prices declined. Exchange indexes in USA increased slightly, whereas exchange indexes in Europe declined because of concerns over the policy implemented by the administration of US President Donald Trump.

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.

Newest comments