bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Ceturtdiena 30.03.2017 | Name days: Nanija, Ilgmārs, Igmārs
LatviaLatvia

Signature collection begins to lift PIT for state funded pensions

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUOn 30 March, ManaBalss.lv portal launched a petition titled ‘Pension without tax’. The goal of this initiative is to lift PIT from 1st level state funded pensions. In order for this initiative to be submitted to the Saeima for review, it needs to receive 10,000 signatures from residents.

«Our objective is to apply amendments to the legislation and make it so personal income tax is no longer applied to 1st level state funded pensions,» – explains the author of the initiative Arnis Vērzemnieks. «Changes would remain in force from 2020 to 2045 and make sure the generation that succeeded in securing Latvia’s independence in 1990 would not experience a drop in their quality of life once they retire. Upon reaching pension age, residents have the right to receive financial assistance without repeated tax payments,» – adds Vērzemnieks.

State Social Insurance Agency’s latest data suggests that approximately 86% of the current pension recipients receive pensions that are below the current minimal wage amount in the country – EUR 370. Pension amount paid to 32% of pensioners in the country is lower than the tax-free minimum for pensions – EUR 235. According to results of a recent SKDS survey, nearly 40% of residents are forced to financially support residents of pension age. This is because the pension amount paid to those residents is not enough to ensure subsistence.

«Estimates suggest that income of residents who are currently employed may decline in half upon reaching pension age,» – says Vērzemnieks. ‘Residents who had retired within the last decade have not had the opportunity to save up sufficient financial resources for their retirement. Rapid changes experienced by residents in the «90s, following the change in Latvia’s economy, created difficulties for residents to adapt to their new life. Most people had to think about survival and feeding their family than creating savings for retirement.»

As long as Latvia’s development level remains below that of Nordic countries, for example, it should not be allowed to charge taxes from state pension recipients and thereby push people to the brink of poverty. Pensions in European countries are charged with PIT, but those pensions are significantly larger than those in Latvia. In addition, their tax-free minimum is larger as well. For example, the tax-free minimum for pensions in Germany is EUR 1,225. Minimum wages there are EUR 1,200 per month. In Latvia, on the other hand, the minimum wage is EUR 370 and the tax-free minimum is only EUR 235. In Lithuania, Bulgaria, Hungary and Slovakia, whose development level is equal to that in Latvia, 1st level pensions are not charged with PIT.

Ref: 102.109.109.3735


Leave a reply

Cooperation among EU member states in investigations of criminal cases to be improved

On Thursday, 30 March, Latvia’s Saeima supported amendments to the Criminal Process Law. These amendments provide for lifting obstacles for cross-border cooperation among European member states in investigations of criminal cases and introducing a single tool for acquiring evidence in member states.

Tele2 plans to open at least 60 new base stations in Latvia this year

Tele2 communications operator plans to build at least 60 new base stations across all of Latvia this year. A total of EUR 3 million is planned to be invested in this plan, the company reports.

Estonian entrepreneur succeeds in Crimean court against Russian Defence Ministry

Estonian entrepreneur has won a trial against the Russian Defense Ministry in a case, where his is defending rights to own real estate in the Russian-annexed Ukrainian peninsular of Crimea.

Agreement reached in regards to minimal wages in construction in Latvia

Latvian Free Trade Unions Association and Latvian Building Contractors Union have agreed on cooperation to reach an agreement on minimal wage levels in construction sector, as reported by LBAS representatives.

Estonian pork producers hope to recover from crisis in no less than three years

In the Estonian pork industry, the amount of pigs will not grow in 2017 and to retake the market share lost to imported produce, it would take no less than three years, a meatpacking firm evaluated.

Seventeen citizens of Vietnam caught trying to illegally cross Latvia’s state border

Seventeen citizens of Vietnam and five guides have been arrested for illegal attempts to cross Latvia’s state border, as reported by State Border Guard.

Circle K Latvia commences reconstruction work at first fuel station

Circle K Latvia has begun reconstruction work at the first fuel station to give it a Circle K look. The opening of the first official Circle K fuel station is planned for May 2017.

WHO: Measles outbreaks occurring in Europe

In countries, where the proportion of the population vaccinated against measles has dropped, the spread of the dangerous infectious disease has been seen with larger outbreaks in Italy and Romania.

Government supports increase of funding for five sports

Prime Minister Maris Kucinskis’ led Latvian National Sports Council has decided to ask the Cabinet of Ministers to review the matter of increasing funding for five sports - bobsleigh, skeleton, luge, biathlon and ice hockey.

Nobel award in literature to be finally handed to Bob Dylan

American singer-songwriter Bob Dylan, who was last year named the laureate of the prestigious Nobel Prize in literature, has agreed to accept his award in Stockholm this week.

Caksa asked to refrain from illegal attempts to influence trade union

A letter has been sent to Healthcare Minister Anda Caksa, asking her to refrain from any attempts to illegally influence decisions of trade unions to refuse working extended work hours, as reported by Latvian Health and Social Care Workers Union.

Kucinskis wants to see Citskovskis in charge of State Chancellery because he has «bright eyes»

One of the strongest characteristics of Interior Affairs Ministry’s deputy state secretary Janis Citskovskis, who is a candidate for the post of director of State Chancellery, is the ability to form a strong and capable team, Prime Minister Maris Kucinskis said in an interview to 900 seconds programme in LNT.

Latvia’s largest taxpayers to be awarded for the twentieth consecutive year

On 30 March, the State Revenue Service will host the Large Taxpayers award ceremony. The festive event will be attended by Finance Minister Dana Reizniece-Ozola, SRS Director General Ilze Cirule and cooperation partners. Awards and certificates will be handed out to the country’s largest taxpayers in twelve nominations.

International credit risk insurer upgrades Latvia’s business risk rating

International credit risk insurer Coface has upgraded Latvia’s business risk rating to A3.

Mixer in U.S. suggests allies should be consistent in their messages

As the Baltic states foreign ministers met with the Speaker of the U.S. House of Representatives, the head of the Estonian foreign service emphasised the significance of consistency and clarity in messages by allies.

Circus support association claims signatures For Human Circus are fake

Riga Circus Support Association has submitted a request to State Police, Corruption Prevention and Combating Bureau and Saeima speaker to commence a criminal process in relation to signatures submitted to the Saeima by Animal Freedom.

Nordea economists: fate of Baltic States – prosperity or undue expensiveness?

Economic growth rate continues to speed up and become more balanced in all three Baltic States. Thanks to more rapid cyclic growth in Eurozone than expected and limited influence of political uncertainty on the global economy, Nordea Bank’s economists predict 3% growth in Lithuania and Latvia, and 2.5% growth in Estonia.

Georgia pleased with new visa-free travel to EU

After four and a half years of negotiations with the European Union, visa-free travel has entered into force for Georgian nationals travelling to the Schengen area, which has been marked by the Prime Minister of the Caucasian country with a trip to Athens and Brussels in a group of students.

Rinkevics invites USA to maintain presence in Baltic region

Strategic partnership between Baltic States and USA in the field of security and defence should continue, says Latvian Foreign Affairs Minister Edgars Rinkevics, inviting USA to maintain its presence in the Baltic region.

Delna: a possible conflict of interests identified in Healthcare Ministry

A possible conflict of interests has been identified in Healthcare Ministry. This conflict remains unresolved, as reported by Delna.

Risky births in Swedish regions prompt government to ensure maternity ward funding

Reacting to reports on risky births in remote places in Sweden, the country’s government has earmarked funding that would maintain the operation of smaller maternity wards and reopen closed ones.

Deputies propose forming a new Public Media Council, preserving NEPLP as a regulator

In a discussion, deputies emphasized the role of an efficient public broadcasters management model in strengthening the media environment, BNN was informed by Saeima’s press-service.

KNAB officers confiscate documents from Jurmala City Council

Corruption Prevention and Combating Bureau confiscated certain documents from Jurmala City Council on Tuesday, 28 March, as confirmed by the city council.

Trump suspends series of anti-climate change measures

Although the U.S. is one of the largest contributors to greenhouse gas emissions globally, the country’s President Donald Trump has issued an executive order aimed at suspending measures introduced by his predecessor in the post hoping to slow down climate change.

Natural gas reserves to be created in Latvia for energy crisis situations

Latvian Cabinet of Ministers supports the plan to entrust the creation of natural gas reserves to Conexus Baltic Grid, as BNN was informed by Economy Ministry.