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Wednesday 24.05.2017 | Name days: Marlēna, Ilvija, Ziedone
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LDDK: to reduce social inequality, minimum wage should be EUR 430

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Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUDuring a meeting of the Cabinet of Ministers, the government supported proposals from social partners and the realization of the new tax policy with consideration of conditions extended by the coalition’s partners for securing funding to healthcare, education and defence, as reported by Latvian Employers’ Confederation.

Since last year, LDDK and its partners have been working on the development of a new medium-term tax policy to find a solution for the new tax system. The goal of the reform is reducing labour taxes, social inequality and making Latvia’s tax system simpler and more competitive, representatives of the confederation say.

LDDK director general Liga Mengelsone: «One of the prerequisites that we used to guide us through the decision-making process in relation to the tax reform – it has to be contributing to competitiveness. A responsibly developed tax policy can become a foundation for economically developed Latvia on a local and international scale. It is important for us to understand our role in Latvia’s future. We have to find an impulse to use export, investments and business development for economic growth and social welfare.»

She emphasizes that it is important for every minister to comprehend their role in the development of the reform and provide 100% returns and support until the moment when the prepared tax reform will be submitted to the Saeima for approval.

To raise the competitiveness of businesses and secure increased investments, the reform provides 0% rate on reinvested profits. PIT will be reduced – from 23% to 20%, LDDK explains.

«As part of the reform, it is also planned to maintain justified expenses for PIT. For general justified expenses for healthcare and education services, donations and donation to political parties, the maximum cap will be EUR 600 a year, but no more than 50% of taxable annual income,» confederation’s representatives continue.

They add that to reduce social inequality, the minimum wage in 2018 is set to be EUR 430, non-taxable minimum for small wage recipients will be EUR 250, benefits for each dependents will be EUR 250 and non-taxable minimum for pensioners will be EUR 250, which will later be increased to EUR 300 by 2020.

Ref: 224.109.109.5069


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