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Monday 21.05.2018 | Name days: Ingmārs, Ernestīne, Akvelīna
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Economic diary of Latvia. «Wrong» taxes

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Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RU

This week the Ministry of Finance plans to sign a 300 000-euro agreement with the World Bank on research into Latvian tax system. Currently, it is not entirely clear, which issues need to be researched as the World Bank itself has found that the Latvian tax regime is not bad at all.

According to the report by the World Bank and PricewaterhouseCoopers on taxation in the world, the tax burden on Latvian companies is still the lowest among Baltic states (Latvia – 35.9%, Lithuania – 42.6, Estonia – 49. 4%).

Authors of the report suggest that the State Revenue Service should promote the culture of paying taxes and use a dual approach to combat tax evasion: one cannot use the same methods towards deliberate tax evaders and towards entrepreneurs, who are willing to pay taxes, but have made unfortunate mistakes in doing that.

Upcoming government on business priorities

According to the plans of the probable next cabinet of ministers led by Māris Kučinskis, an increase of productivity should be a top priority with the aim of Latvia’s productivity reaching the EU average level by 2018 – namely, 26 000 euros per industrial worker in actual prices.
To reach another priority – an increase of cargo from the West and from Eastern Asia – Kučinskis plans to use the so-called single-stop principle, when every potential partner in cargo or logistics is offered the opportunities of a joint Latvian transport corridor.

Unused sales potential

Movement Loģiskā atlase – formed by the Latvian Information and Communications Technology Association and leading enterprises in the field – has performed a study, the conclusions of which indicate that there are objective obstacles to reaching the ambitious goals by the upcoming government.
Loģiskā atlase found that advertisements used by Latvian companies are ineffective in 40% of cases either because wrong advertising channels are selected or because companies are not skilful enough to sell their produce, when advertising has done its job.


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