Latviski English По-русски
Sunday 28.05.2017 | Name days: Vilhelms, Vilis

LTA: state institution intentionally secured monopoly for private company

(+1 rating, 1 votes)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RULatvian Traders Association has turned to the Competition Council with a request to evaluate the situation that formed when the State Revenue Service intentionally used amendments to regulations to create a monopoly state for Computer Hardware Design, providing the company with the opportunity to gain significant profits while also excluding other companies from competition on the cash registers market, LTA reports.

«Only at the end of April, four whole months after businesses should have started using cash registered compliant with new requirements, did SRS register the first new cash register models – CHF 3050, CHD 3050U, CHD 2050 and CHD 7,» LTA representatives explain the situation.

They say all four cash register models are offered by one company – Computer Hardware Design. «Under such clear monopolistic conditions, SRS decided to submit for approval amendments to Cab. Req. No. 96, which were expanded with Section 141.8, the sub-section of which states that old generation cash registers (if a businessmen has no more than 100 such units) can be used for no more than one month after receiving certificate of compliance,» LTA continues.

The association notes that on the next day after amending the aforementioned requirements, SRS released a notification to its clients through EDS that businessmen have one month after receiving this notification to either perform adaptation of their existing cash registers to new requirements or replace them by purchasing one of the newly registered models.

«Because no service offers the option to adapt existing cash registers to new requirements, businessmen are forced to buy new cash registers from Computer Hardware Design. This also applies to companies that had procured new cash registers in the first four months of the year and have only used them for a very short time before SRS decided to come up with new requirements.»

The price of new cash register models is close to EUR 400. For example, a new CHD 7 model costs EUR 377 without installation costs. «Businessmen have received notifications from SRS and are shocked,» LTA adds.

LTA president Henriks Danusevics: «If the free market cannot be destroyed, the country’s administrative requirements can destroy business. Even if businessmen are able to exist and work within private competition conditions can no longer tolerate the rising administrative repressions.»

LTA notes that SRS’ requirements to change cash registers will destroy small businesses. «One example is the Riga Book Antiquary, which existed since 1949. This book store was known for its cultural value. Now this store is at risk. This company has also received a letter from SRS, requesting a change of cash registers. The book store does not have the money to afford any of the new models.»

The owner of the antique book store also expresses concerns: «The question is – how many small businesses will be ruined by this? Our annual turnover is EUR 18,500. We have only three employees. It is somewhat offensive the way all this is presented by the state. There are also no guidelines as to what we should do with old cash registers. But there will be thousands of them. Selling them would at least secure some tax returns. We feel like this decision has been made without taking into account practical recommendations and common sense. The state should have thought about procedures for replacement of cash registers. It is also a good question as to how older people will adapt to work with new devices. It is likely many people will lose their jobs.»

LTA emphasizes that by submitting amendments to regulations to the government for approval, SRS ensures the monopoly of a single company. «This will create a situation when it becomes pointless for other companies to enter the cash register market, considering the one-month term for the replacement of old cash registers.»

The association considers asking Finance Minister Dana Reizniece-Ozola to step down, as well as fire the management of SRS.


Leave a reply

Municipal elections 2017: what do people say?

With municipal elections gradually coming close, BNN offers a compilation of opinions provided by experts from different industries. Short answers consist of thoughts about specific municipalities that affect respondents directly, and municipal administrations in general – what people expect from officials and what changes they expect from elections.

Trade of natural gas to legal clients in Latvia commences

Trade of natural gas to legal clients in Latvia has commenced. Latvenergo’s Elektrum product offers fixed-price contracts for 12-month supply period. The first gas supply contracts have been signed with clients in Latvia, the company reports.

Murniece: the biggest strength of Latvia’s parliament is public involvement

The biggest strength of Latvia’s parliament is the involvement of the public in resolution efforts of matters associated with child and women’s rights, the rights of disabled people, as well as security, tax policy and the European Union, says Saeima speaker Inara Murniece.

Corruption on decline in Lithuania, yet still remains troublesome

To wrap up the findings of a new corruption research ordered by the Special Investigation Service, an institution dealing with financial crimes in Lithuania, the situation is largely improving, yet not as fast as the service wishes.

Ventspils signs agreement with Chinese-Belarusian industrial park Great Stone

Vetnspils Freeport Authority and Ventspils High Technology Park signed an agreement yesterday with Chinese-Belarusian industrial park Great Stone, which is the largest infrastructure development project in Belarus, as reported by the freeport’s representatives.

Resignation filed by arrested Tallinn Deputy Mayor

The Deputy Mayor of the Estonian capital has stepped down from office after being arrested as part of a criminal case into violations of procedural restrictions of Tallinn procurement tenders.

Residents: situation in Latvia is developing in a wrong manner

54% of residents believe the situation in Latvia is currently developing in a wrong manner. A similar situation is noted in relation to the evaluation of the government’s work. 75% of respondents are critical about the government’s work. Only 17% of respondents are positive about the government’s work, according to results of Baltic International Bank Latvian Barometer.

Finance Minister: we have to be ready for flexibility in the reform plan

Currently we have to progress forward with the intended tax reform and prepare for a degree of flexibility, says Latvian Finance Minister Dana Reizniece-Ozola.

Zarins: unlike healthcare workers, Latvia’s roads are crumbling silently

Saeima deputy Ivars Zarins has submitted a proposal that offers restoring State Roads Fund and providing it with funding of 80% of excise tax for oil products. It is also proposed to divert income from vehicle operation tax and road use fee.

Price of oil slides 5%, though exporters decide to uphold production restrictions

Oil price has dropped by around five percent, even though oil-exporting countries have decided to maintain production limits until spring 2018.

Experts: role of free trade agreements to increase – especially with Asia

Latvian businessmen are already sufficiently active in several Asian markets. Their experience shows – these markets have great potential, according to representatives of the European Parliament’s Information Bureau.

Trump steps up pressure on NATO’s «indebted»

All NATO member states should pay their fair share of military expenses, has stated U.S. President Donald Trump in a meeting of NATO member states in Brussels.

Sunday expected to be summer-like hot in Latvia

This Sunday is expected to be summer-like hot, whereas the week after will be cold and rainy, as reported by Environment, Geology and Meteorology Centre.

Pensioner guide: old people are isolated from society in Latvia

«In my experience with social care, I was surprised by the dominating belief that the only thing old people need is elementary care – some food, a wash and a walk outside. Psychology of old people is something completely alien to people in Latvia,» says initiator of Pensioners Guide in Latvia Nelli Skadina.

SEB: reimbursements paid to nearly 340 loan clients over the past five years

In five years since the signing of the first loan payment insurance contract, reimbursements have been paid to nearly 240 SEB Bank clients who took loans and experienced unexpected difficulties after.

Number of tourists to Riga up 7% in 2017

In the first three months of 2017, a total of 263.5 thousand people were serviced in Riga’s hotels and tourist accommodations. 221.3 thousand of those tourists were foreign guests. Compared with the same period of last year, the number of tourists has grown 7%.

Estonian capital’s Deputy Mayor arrested over waste management dealings

The Deputy Mayor of Tallinn, Arvo Sarapuu, accused of deliberately violating procedural restrictions an especially large scale as part of a criminal case, has been arrested by the Estonian Internal Security Service.

Saeima ratifies convention on restriction for the use of mercury

On Thursday, 25 May, Latvia’s Saeima ratified Minamata Convention on Mercury. The objective of the convention is protecting people and the environment against anthropogenic emissions and leaks of mercury.

Europe experienced foreign investment records last year

Last year, Europe attracted a record large volume of foreign investments with 5,845 new direct investment projects, which is 15% more than the year before, according to results of EY European Attractiveness Survey.

Electric car charging network expands in Latvia to promote «greener thinking»

The once long-away dream of having cars that run on alternative fuel is now a reality – a special infrastructure network keeps expanding in Latvia to make electric cars more popular, says Motors Latvia BMW Group manager Ivars Norvelis.

Estonian Minister steps down after questioning NATO membership

Estonian Minister of Public Affairs Mihhail Korb has stated he resigns from office after saying he is not in favour of NATO membership.

Construction of a fish freezer commences at Ventspils Freeport

Construction work has commenced in Ventspils industrial territory on Talsu Street 200. Latvian National Fisheries Producers' Organisation plans to build a fish freezer facility there, as reported by Ventspils Freeport.

EC: there is a risk tax reform will increase inequality

There is a risk that Latvian government’s proposed tax reform will increase income inequality in the country instead of lowering it, said head of European Commission’s office in Latvia Inna Steinbuka.

Electronic monitoring of convicts will help have nearly EUR 500,000 for Latvia

Latvian State Probation Service believes electronic monitoring of convicts proved itself. This system has helped save nearly EUR 500,000 for the state budget since 2015.

Grandson of Stalin, who dropped Soviet tyrant’s surname, has died

Russian theatre director Alexander Burdonsky, the grandson of the leader of Soviet Communist mass repressions, Josef Stalin, has died at the age of 75.