bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Tuesday 23.01.2018 | Name days: Strauta, Grieta
LatviaLatvia

Economic Diary of Latvia. About lies, debts and exports

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUThe State Revenue Service, which was one step away from getting a new chief, remains headless. The approval of the sole candidate – Inga Kolegova – was ruined at the least moment by Unity. As it turned out, there were valid reasons for that.

Her approval on Tuesday had to be cancelled due to protests from Unity, which discovered contradictions between Kolegova’s explanations regarding dividends and the information available in public registers.

Although Kolegova stated in her declarations that she has received nearly EUR 1 million in dividends from Pallogs in the past several years, according to information from Firmas.lv database, documents submitted by the company to the Enterprise Register state that owners of the company had decided not to divide revenue.

According to minutes of Pallogs’ shareholder meetings, in the past four years owners of the company decided not to divide the company’s revenue. Minutes are signed by member of the company’s management board Elmars Svirksts and Kolegova’s trustee – her brother, chairman of the company’s management board Maris Zudans.

The report of the company’s management for 2015 mentions that the decision had been voiced to divide up the revenue of previous years. The report is signed by the management board of the company – Zudans, Sviksts and Aivars Erels.

In her income declaration, Kolegova mentioned that she received dividends worth EUR 320,000 from Pallogs in 2015; EUR 380,000 in 2014; LVL 240,000 (EUR 341,500) in 2013.

Soon after, a report came from SRS’ Customs Office that customs officials had detained a car owned by Kolegova’s brother at the airport during a planned inspection. The finance minister, however, said it was nothing more than an attempt to put pressure on Kolegova’s family.

Andris Piebalgs – head of Unity – believes it is necessary to announce another personnel selection process. According to him, nothing bad will happen if a new head of SRS is approved in November.

According to Piebalgs, it is necessary to change the criteria used in the selection process and set a higher wage for the head of the institution.

On Friday, Kolegova announced her decision to pull her candidacy from the selection process. This means a new selection process will be organized. Until a new head is chosen, deputy Director Genera Dace Peleka will remain as the acting head of the institution.

Collectable and suspended debts

Although Piebalgs believes SRS functions fine at the moment, the general level of tax debts administered by the service reached EUR 1,425 billion as of 1 August 2016. 62.36% of this amount (EUR 888,890,000) consists of suspended taxes.

The amount of debts of the main state budget reached EUR 935,523,000. That of municipal budget reached EUR 322,150,000. The amount of debts for social insurance payments reached EUR 167,770,000.

The total amount of debts has grown 0.63% since the beginning of January 2016, when it was EUR 1,416,000,000. Actual suspended taxes have growth 0.98% in the past seven months.

The biggest portion of debts administered by SRS consists of topical debts – EUR 1,041,000,000 (73.05%).

Suspended debts form 21.86% or EUR 311,610,000. The proportion of extended taxes is equal to 5.09% or EUR 72,544,000. Suspended debts are the ones for which penalties are no longer calculated. They consist of debt for companies declared insolvent.

Enforced debts, according to legislative acts, form EUR 1,032,000,000 or 72.37%. Actually enforced debts form a mere 10.02% or EUR 142,775,000 of the total size of debt.

Debts that are not subject to enforcement form EUR 888,890,000 (62.36% of the total debt size). The biggest portion of those debts (EUR 872,250,000) consists of debts of companies that have no finances or property to be confiscated to repay debts.

Export getting weaker

One more piece of news this week – exports of Latvian goods declined by 2.8% in the first half-year of 2016 to EUR 4,833,000,000, according to information from the Central Statistical Bureau of Latvia.

Latvia exported wood and products made of wood worth EUR 146,046,000 (17.9% of the total export volume) in June, which is 7.1% less in comparison to May. Exports of electrical appliances reached EUR 93,038,000 (11.4%), which is 17.2% more in comparison to the previous month.

The general export growth of 2016 is expected to be negative, but exports of Latvian-made products may yet grow 2-3%, believes Citadele economist Martins Abolins.

At the same time, he points to the fact that major uncertainty in exports of 2016 is associated with grains, exports of which depends on this year’s yield and global prices, which have already declined in comparison with the previous year.

According to Abolins, indexes of Latvia’s exports are affected by the dropping prices on oil, food products and other resources, as well as generally low activity in world trade. Although June’s exports of goods remained basically on the level of the previous year (grew 0.4%), exports also declined 2.8% in the first six months of 2016.

Rail Baltica is given green light

Finally, the government approved the route for Rail Baltica project in Latvia. The only remaining disputed region is Salacgriva. Consultations about it will be held with the European Commission soon.

The Cabinet of Ministers has ordered Environmental Protection and Regional Development Ministry and Transport Ministry to work with Salacrgiva Council and European Commission Directorate-General for Environment in order to find a solution to the C5 branch of the railway line through Natura 2000 (network of protected areas of European importance) in the valley of Vitrupe River.

According to the state secretary of Environmental Protection and Regional Development Ministry Rinalds Mucins, consultations could begin in September 2016 and last for approximately two months.

Previously, representatives of Salacgriva Council, Transport Ministry and Environmental Protection Ministry failed to reach a compromise for this matter.

Transport Ministry’s representatives have said they plan to submit options for B2-2 branch to the government. According to the plan, this branch would not cross the territory of Natura 2000, as the existing C5 option breaches at least three legislative acts.

Ref: 017.109.109.9878


Leave a reply

Latvenergo: Latvia is the largest energy exporter in Baltic States

Latvia continues exporting electrical energy produced in the country – as of Monday, 22 January, it was 832 MW. Especially intensive energy production is recorded for Daugava’s hydro-electric power plants and Riga’s CHP plants. The largest import volume is registered for Lithuania, to which the amount of exported energy equals the amount consumed in Latvia, Latvenergo explains.

LALRG secretary general: we have to reduce gap in quality of life for EU citizens

Ever since Latvia joined the European Union, its population has declined 14%. The most significant decline was caused by the departure of residents of working age to other EU member states. Because of that, the population in eastern regions of Latvia has declined 23%.

Czechs up for close race in this week's presidential run-off

As the Czech Republic nears the second round of its presidential election this weekend, sociologists estimate that the pro-Western academic Jiří Drahoš enjoys a somewhat larger support than the incumbent Miloš Zeman, who easily won the first round.

Producer price level in Latvia’s industry up 3.1%

Compared to December 2016, the level of producer prices in Latvian industry rose by 3.1 % in December 2017. Prices of products sold on the domestic market rose by 3.0 %, while prices of exported products went up by 3.3 %. Prices of products exported to euro area countries grew by 3.8 %, whereas prices of products exported to non-euro area countries rose by 2.9 %.

MEP: an even greater UGF dominance would slow down Latvia’s development

If the Union of Greens and Farmers (UGF) gains an even greater presence in the upcoming Saeima elections, Latvia’s continued development would suffer, said member of the European Parliament Artis Pabriks in an interview to 900 seconds programme of LNT.

Tax reform challenge in January: labour tax recalculation

2018 commenced for Latvia with a historical tax reform and conceptual changes, significantly affecting everyday work performed by businessmen, employers and accountants. One of the changes financial specialists have to remember when calculating wages for January is the one for personal income tax, which also includes changes for state social insurance fees and solidarity tax, BNN was told by accounting experts.

Total tax debts in Latvia reach 1.217 billion euros at beginning of 2018

At the beginning of the year, total tax debts in Latvia, including existing debts, halted debts and debts with extended repayment debts, reached EUR 1.217 billion, which is 3% less when compared with the previous month, as reported by the State Revenue Service.

Estonia emphasises animal welfare as demand for animal food products grows

Although the demand for food products from animals is increasing, attention should be paid both animal welfare and sustainability in agriculture, Estonia's Minister for Rural Affairs Tarmo Tamm has stated.

Latvia hopes to recover its status as a country free of swine fever

There is hope that Latvia may yet recover its status of a country free of swine fever, says Food and Veterinary Service’s (FVS) Animal Infections Monitoring Department lead expert Mārtiņš Seržants.

Estonia prepares to inform population of actions in case of emergency or war

Estonia is preparing a brochure on how its population should act in case of major crisis or war.

De Facto: international lawsuit against Latvia is associated with infamous Winergy case

Norvik Bank’s lawsuit against Latvian state in the international court of arbitration in Washington is associated with Winergy wind park business, as reported by De Facto programme of LTV. The bank has yet to announce the amount of money it wishes to enforce from the state

German Social Democrats vote to U-turn on coalition talks with Merkel's conservatives

In Germany, where four months after its federal parliamentary elections there is still no government, the Social Democrats have voted to enter coalition talks with the conservatives led by German Chancellor Angela Merkel.

Weather in Latvia to become warmer this week; thaw to settle in

Weather in Latvia will be dictated by an anticyclone at the beginning of the week. Precipitation is only expected in some areas, mostly in the north. The sky will be cloudy for the most part. Still some sun is expected every now and then, as reported by State Environment, Geology and Meteorology Centre.

Turkey crosses into Syria to attack Kurdish militia

Turkey's ground forces have entered the territory of neighbouring Syria strengthening Ankara's offensive to push Kurdish militia, considered to be terrorists by Turkey, away from the border.

Week in Lithuania. Fake news on Lithuanian Defence Minister planted on news portal

The Tv3. lt news website was hacked on Thursday, January 18 - a fake news story about Lithuanian Defence Minister Raimundas Karoblis was posted claiming that Karoblis allegedly harassed Ridas Jasiulionis, a journalist at the Žinių Radijas radio station, and admitted being gay.

BNN summary of the week: final report on Oligarchs case and ordered attacks on e-health

BNN offers a summary of this week’s topical news in a variety of categories: Change; Fight; Attack; Growth; Decline; Opinion; and Study.

Economist: the most important reform has to happen in people’s heads

«Of all the clever things taught to us in school about psychology, one thing that has stuck with me over the years is the idea of internal/external control point. There are people who believe they make their own fate. There are also people who believe our fate depends on external powers. I suspect people in Latvia explain successes and failures with external factors much more than people in Switzerland or any other country that has enjoyed its freedom longer than Latvia,» comments Luminor Bank’s economist Pēteris Strautiņš.

Minister promises bigger wages for working people and support for country’s industry

«Latvian Economy Ministry’s priorities for 2018 include increasing wages for working people and providing support to the country’s industry. For Latvia’s centenary year, every resident should have the right to experience the increase of the personal and state welfare,» promises Economy Minister Arvils Ašeradens.

Latvenergo: electricity price has declined 30% in the past three years

Average electricity price in Latvia has declined in recent years. The average price of electricity has declined by 30% at Nord Pool exchange between 2014 and 2017, allowing end user costs to decline, says Latvenergo.

Alcohol sellers in Estonia to be checked by little «police»

To find shop assistants illegally selling alcohol or tobacco to minors, Estonian police introduces the method of sending minors as police aides to retail shops to try to purchase the products banned to them.

EY study: cyber security has become a priority to banks this year

Over the course of the year, priorities of banks around the world have switched from reputation and risk management to data security matters, as concluded in the latest EY Global Banking Outlook 2018.

Political association: UGF and Harmony are covering up state capture

«Parliamentary investigation of Oligarchs case has shown what is what in the Saeima of the Republic of Latvia. Green farmers are in full harmony, covering up Aivars Lembergs and the fact of state capture. They and Inguna Sudraba have made the parliamentary investigation into a farce. Unfortunately, the power in those people’s hands is no farce – rather misfortune for all of Latvia. I hope citizens will take all that into account when they go voting,» says leader of Kustība Par! Daniels Pavļuts.

Tallinn-Helsinki tunnel plan lacks ambition, says «Angry Birds» game maker

While Finland and Estonia work on plans of an under-sea tunnel from Tallinn to Helsinki, the construction of which could start in the 2030s, a Finnish businessman, previously involved in development of Angy Birds video game, has presented plans to finish the massive construction project in 2024 already.

Experts: healthcare financing law will deny healthcare to the least protected

In a discussion regarding healthcare, experts said that Latvian President Raimonds Vējoņis’ proposed Healthcare Financing Law is economically unjustified and ineffective. The document lacks principles of a socially responsible state, because healthcare is becoming less accessible, which will likely worsen public health indexes, says Kustība Par! political party.

Branded «aggressor state», Russia says Ukraine buries Minsk peace agreements

As the Donbas War continues, the parliament of Ukraine has passed the so-called Donbas reintegration bill after three days of debates defining territories controlled by pro-Russian separatists in the east of the country as temporarily occupied by Russia.

Would you be ready to boycott something in your life?

View Results

Loading ... Loading ...

Polls Archive



Category feed: Feed: