bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Wednesday 17.01.2018 | Name days: Tenis, Dravis
LatviaLatvia

Economic Diary of Latvia. Sanctions, taxes and keeping promises

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUThis week is notable mostly because of a preliminary piece of news that Russia may decide to lift its embargo on imports of fish products in Latvia in the next two weeks.

This piece of information came as a result of a visit by Latvian Agriculture Minister Janis Duklavs and Director General of Latvian Food and Veterinary Service Maris Balodis to Moscow. Latvian officials, met with Russian Agriculture Minister Aleksandr Tkachev in order to discuss ways of resolving the sanction war aimed at Latvian fish processing companies.

After the talks, Janis Duklavs announced the discussion was constructive. The two sides agreed that Latvia will provide Russian supervisory authorities additional information, including translated versions of some of the previously sent documents. According to the minister, Russian colleagues have promised to review the information quickly. If need be, Russian officials will ask additional questions to companies in which violations have been found. Once the Russian side receives the necessary information from Latvia and reviews it, it will be possible to discuss the matter of lifting the temporary ban on imports of Latvian canned fish products, said Duklavs.

Practically on the same day of Duklavs making this announcement, Aleksandr Tkachev said that Russia is prepared to lift the ban on Latvian fish products in two weeks’ time – after a detailed review of received information. «If no violations are noted, restrictions will be lifted,» – said Tkachev.

As previously reported, the ban on imports of Latvian and Estonian fish products was established by Russia on 4 June 2015. The reason for this embargo was Rosselhaznadzor’s uncovered systematic violations in the labeling of fish products and exceeded levels of benzopyrene concentration.

With a delay to the plan

According to the head of Latvian State Revenue Service Inara Petersone, Russian sanctions aimed at products imported from Europe have impacted tax administration in Latvia. This can potentially delay talks in regard to the country’s next year’s budget.

According to SRS’ report for the first half-year of 2015, tax administration is currently below expectations. The state treasury was expected to raise EUR 4.08 billion in the first seven months of 2015. In reality, only EUR 4.05 billion have been collected in the aforementioned period.

VAT administration was previously planned at EIR 1.1 billion. In reality SRS has managed to collect only EUR 1.07 billion. Nevertheless, compared with the first seven months of 2014, VAT administration has grown by 3.8%.

Corporate Income Tax administration is currently at EUR 222.57 million, which is 5.2% more in comparison with the year before, but still EUR 4.95 million below the plan. Social insurance fees for the first seven months of 2015 are behind the plan by EUR 3.66 million (at EUR 1.35 billion). Non-tax administration is EUR 8.18 million behind the plan (at EUR 246.23 million).

PIT is actually ahead of the plan – EUR 822.94 million in comparison with EUR 822.1 million. Excise tax amount is currently at EUR 445.56 million as opposed to the originally planned EUR 433.81 million, as reported by SRS.

Internal and external security, education and medicine – some of the most expensive fields – will be the main priorities of next year’s budget. The first meeting of the coalition work group for the development of the budget for 2015 was held this week. According to Finance Minister Janis Reirs, the budget will be based on expectations that GDP will turn out 3%, deficit will not exceed 1% and consumer prices will grow 2%.

Banks fail to keep their word

In a state of sanction war, declines in collected taxes and the necessity to invest more and more money into defence and security, the matter related to the role of credit institutions in the development of national economy has been put up for discussion.

As reported by Economy Minister Dana Reizniece-Ozola, coalition parties plan to discuss the situation with the allocation of loans. On 7 August, partners of the coalition plan to listen to the report of the Finance and Capital Market Commission and governors of the largest banks about trends in loans of households and the commercial sector.

Previously, the minister had landed criticisms on banks, saying that their policy hinders economic growth. She described their policy as very poor.

Reizniece-Ozola reminded that while the Saeima was discussing the adoption of ‘left keys’ principle in mortgage loan services, banks were actively calling for a refusal of such changes, promising to renew lending services. Now it seems that politicians have kept their word and banks have not.

Ref: 017.109.109.2624


Leave a reply

Mass protests in Greece do not hold back new bailout reforms

The parliament of Greece has adopted a large set of reforms pushed for by international creditors in return for more bailout money, despite approximately 20 000 people protesting outside the parliament and brief clashes with riot police breaking out.

Foster families in Latvia to receive larger benefits

Municipal administrations have a duty to pay larger benefits for child care when children are put in foster families, Latvian Welfare Ministry reports.

Government plans to improve anti-doping measures in Latvia

During a meeting of the Cabinet of Ministers, a legislative draft developed by Healthcare Ministry on adding changes to the Sports Law for the improvement the country’s anti-doping measures was approved.

Only 12% of workers know their organization’s IT security policy

Businesses around the world still suffer from a catastrophically low level of awareness for IT matters, according to a study performed by Kaspersky Lab and B2B International.

Parents let children on ice in spite of temporary restriction

On Sunday, 14 January, officers of Riga Municipal Police observed with video-recording equipment how two people were skating on the surface of Victory Park’s pond. Because it is banned for people to remain on ice of large bodies of water in Riga, officers were sent in.

Czech President to be determined in duel between Zeman and Drahoš

In the Czech presidential election, no candidate has garnered a half of the votes and its result will be determined in a run-off between the current eursceptic President and a pro-European academic.

Aldaris: non-alcoholic beer market in Latvia grew 9% in 2017

Aldaris concluded 2017 with a significant increase in their non-alcoholic beer category of products. Demand for non-alcoholic beer has increased across all of Latvia – market growth was 9% in 2017, as reported by the company’s representatives.

Politician reports meddling with e-health system; prime minister parries

Last Thursday, 11 January, e-health system ‘suffered malfunctions’, which suggests that it may have been hacked, Saeima’s Social and Employment Matters Committee head Aija Barča mentioned in an interview to Latvijas Radio.

Pension fund cautious about 500-million-euro bridge project to Saaremaa

Commenting on the idea that Estonian pension funds could invest into the ambitious project of building a bridge from mainland Estonia to the country’s largest island, Swedish Swedbank has expressed caution.

Study: more than half of Latvians do not trust other people

52% of Latvian residents believe most people cannot be trusted. Only 5% of residents are ready to trust their fellow man. Less than one-fifth of Latvian residents trust decision-makers, according to results of a study performed by SKDS.

Economic expert: 2018 expected to be good for investors

«This year promises to be good for investors, because global economy is on a rise and profits of businesses have a tendency to grow,» says Luminor economic expert Gints Belēvičs.

Estonia counts more residents for 3rd consecutive year

Registering an increase in the Estonian population for the third consecutive year, Estonian statisticians have estimated that the population has increased by 3,070 people to 1,318,700 residents. They have also warned that this is preliminary data, which could still change considerably as unregistered immigration has not been included.

Russian school struck by teenager knife attack

In a knife attack on a school in Perm, Russia, eleven children and a teacher have suffered injuries.

NA: city council has to consider new partnership approach for Agenskalns market

Riga City Council members have to decide what is more important for Agenskalns market’s development: rate or quality. There are two options: force a closed market development with an auction of long-term lease or consider public private partnership option. Such a proposal was submitted to Riga City Council’s City Property Committee by the faction of the National Alliance.

Romania Prime Minister changed, second since June

Romanian head of government Mihai Tudose has lost the support of his own Social Democratic Party becoming the second Romanian Prime Minister to lose the seat in seven months.

Moderately rapid export rise recorded in Latvia in January-November period

Compared with the previous year’s period, a moderately rapid export growth was recorded in Latvia in the January-November period of 2017 when compared with other EU member states, according to data published by Eurostat.

Japanese R&I upgrades Latvia’s credit rating to A-

Japanese Rating and Investment Information, Inc. (R&I) has announced its decision to upgrade Latvia’s rating from BBB+ to A- with a stable outlook, as reported by Latvian State Treasury.

KVV Liepājas metalurgs to be auctioned off

Insolvency administrator to the bankrupt KVV Liepājas metalurgs Guntars Koris has decided to sell property owned by the company at an auction, as confirmed by the administrator’s representative Dzintars Hmieļevskis.

Port turnover of Latvia’s neighbours up 9%; Latvia suffers 2% decline

«Total turnover of Russian ports has grown to 787 million tonnes, according to data from Russian Federal Agency for Marine and River Transport. Compared with 2016, stevedores of Latvia’s neighbouring countries serviced 7.2% more liquid cargoes, with their volume reaching 414 million tonnes. The total volume of bulk cargoes, on the other hand, has increased by 11.1%, and now reaches 373 million tonnes,» as reported by Dienas Bizness journalist Egons Mudulis.

Greek transport strike seeks to safeguard right to call strikes

A scope of Greek public transport services drew to a halt on the opening day of the week as public transport workers and air traffic controllers engaged in a strike to protest against what they see as attempts to limit they right to hold strikes.

Olaine prison to have a new training centre for correctional service personnel

On 15th and 16th January, Justice Ministry will organize a meeting for the Norwegian finance instrument’s 2014-2021 planning period. During this period, officials will discuss the progress of the Improved correctional services system. As part of this programme, it is planned to build a new training centre in Olaine prison for correctional service personnel, as reported by the ministry.

Estonia's new road tax payment criticised by road hauliers

As the new road tax has entered into force in Estonia in 2018, the country's Association of Estonian International Road Carriers has commented after the first two weeks of its implementation that a key problem is that the state has not granted truck drivers the possibility to pay the road tax at gas stations in addition to the existing way paying the tax online.

Marriott International hotel network enters Latvia’s market

Albert Hotel will be closed down for renovations on Monday, 15 January. It will be reopened in 2019 as AC Hotel Riga part of Marriorr Group. The new Marriott hotel in Latvia will be managed by Legendhotels, as BNN was told by the company.

NP: Reizniece-Ozola and Kučinskis are proud of tax reform, businessmen are not

Latvia’s tax system underwent serious reforms before the country entered 2018. Until now officials only mentioned the benefits – businessmen will no longer have to pay tax for profits if they reinvest money in business development, the majority of small wage recipients will become several dozen euros richer. However, businessmen are generally dissatisfied with the reform, Nekā personīga reports.

Ilves suggests creation of world cyber-security alliance beyond NATO

Former Estonian President, cyber-security activist Toomas Hendrik Ilves has noted that world's democratic countries, starting from NATO, should form a common cyber security organisation.

Would you be ready to boycott something in your life?

View Results

Loading ... Loading ...

Polls Archive



Category feed: Feed: