bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Wednesday 18.07.2018 | Name days: Rozālija, Roze
LatviaLatvia

Average Latvian families pay 7 500 LVL in taxes annually

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

According to the calculations of the Swedbank‘s Institute of Private Finances, an average Latvian family pays 7 500 LVL in taxes annually.

Most of the paid taxes (75%) are related to salaries (PIT, mandatory employee and employer state social insurance payments). 17% is VAT for family’s purchases, 7% for procurement of excise goods (fuel, alcohol, tobacco), 1% annual motor vehicle fees and 0.4% – real estate tax.

The amount of VAT paid in family expenses is the largest of expense taxes. An average of 106 LVL out of purchases worth 640 LVL are paid in VAT (usually a reduced VAT rate is applied to 12% of all purchases).

In 2012, families have paid approximately 480 LVL per month in workforce tax, given the residents’ income and social taxes, as well as the set non-taxable minimum and reliefs on dependents. It is planned in the 2013 state budget plan to reduce PIT rate to 24% and increase reliefs on every dependent from 70 to 80 LVL. As a result of the reduction of the tax burden, income of such families is expected to grow by about 100 LVL in 2013.

“A family with average income pays a second salary in workforce and expense taxes alone during the year. People mostly understand that their amount of paid PIT is large. However, they rarely calculate its exact amount,” – says Swedbank‘s Institute of Private Finances Director Ieva Use-Cimmermane.

Ref: 102.109.109.4908


Leave a reply

  1. Bozo the clown says:

    Latvia is the only country in the world where households pay more taxes than they earn. Very funny indeed.

  2. Bozi women says:

    SWEDBANK fait semble t-il référence a l’argent que les Lettons “gagnent” et que certains d’entre eux “prennent” à d’autres…Ceci explique que le montant de l’impôt est supérieur aux revenus….

    SI vous voulez, je vous donne un exemple bien précis.

  3. T says:

    How’s this possible? A household pays more tax than it earns… only in Lativia :(

    Are all tax revenues, including corporate taxes, divided by number of households? Is this how this gigantic number is calculated? Anyway, it proves that our greedy governments drains too much money out of our pockets.

    • jj says:

      Pays more tax that it earns? Rubbish – its not true.

      Greedy government drains too much money? Rubbish – maybe if you paid a bit more tax then we could have better hospitals and pay nurses better wages!

  4. BTC says:

    Bien volontier pour l exemple car j ai beaucoup de mal a comprendre.

  5. JPR says:

    This is bullshit math!

  6. Lars Berhard says:

    Pf course it is not true

Will Latvians know who elects their president? Draft on open vote «on the move»

On Tuesday, 17 July, Saeima’s Legal Affairs Commission decided to submit for the first reading amendments to the Constitution of the Republic of Latvia that provide for holding election of the country’s president in the Saeima through an open vote, as reported by the parliament’s press-service.

Schengen information system to help prevent tractor theft cases in Latvia

Latvia’s Cabinet of Ministers has supported amendments to the Operation of the Schengen Information System developed by the Interior Affairs Ministry. The aim of those amendments is providing access to the system to ensure public order and security in member states, the ministry explains.

Ministry declares no more free plastic bags for shoppers

From 1 January 2019 onward supermarkets will no longer provide plastic bags to customers free of charge. This will not apply to very light plastic bags, as confirmed by Latvia’s Environment Protection and Regional Development Ministry.

EY auditor’s work in ABLV Bank’s liquidation will be managed by its Polish office

The work of EY work in ABLV Bank’s liquidation process will be managed by its Polish office, as confirmed by company’s representatives.

Estonia sees no geopolitical change after U.S.-Russian summit in Helsinki

Estonian Foreign Minister Sven Mikser has commented cautiously that the U.S.-Russia summit in Helsinki is unlikely to bring fundamental change in the relations between the West, NATO military alliance and Russia.

airBaltic carried record large number of passengers in June

Latvia’s national airBaltic airline carried 1,876,839 passengers to destinations in Europe, Scandinavia, Russia, CIS countries and the Middle East in the first six months of 2018. This is 20% more when compared to the same period of last year, as BNN was told by the company.

Police to investigate possible MPC fraud at Tukums DH CHP plant

One of the largest CHP plants in Kurzeme – SIA Tukums DH – may have been squandering produced heating energy for a long time, which is a serious breach of mandatory procurement component governing rules, TV3 news reports.

Estonian holidaymakers die in Ukraine, media report

Three Estonian holidaymakers in Ukraine, have been found dead in a hotel in the Black Sea resort town of Odessa last weekend, Estonian media report without identifying the three young men.

Languages «a must-have». An interview with ex-president about political market methods and communist approach

There are two ways a political market is realized during closed presidential elections: one involves approval of candidates in exchange for votes, and the other – for money. If it’s the latter, it is best for no one to know how elections are performed. Harmony, which now stays quiet about open elections, has always been against this proposal, because it does not allow for creating a political market – sale of votes in exchange for influence, which has been done before...

Migration from Baltics, Eastern Europe to UK lowest in years

Migration to the UK from the Baltics and other member states of the European Union has been the lowest it has been for nearly four years in 2017, Britain's official statistics show.

Putin in Helsinki denies U.S. election meddling, Trump doesn't object

At the Russia-U.S. summit Helsinki, a key development has been differences in the attitude by U.S. federal officials to Russian interference in the American election process. Days after Washington charged 12 Russians with hacking the computer systems of U.S. officials, U.S. President Donald Trump has accepted the denial of Russian responsibility expressed by Russian President Vladimir Putin.

Stock exchange indexes showing varied trends; oil prices decline

Stock exchange indexes in USA and Europe showed varied trends on Monday, 16 July. Bank profit rise was reported for Q2.

Rezekne Council deputies will not be penalized for releasing newspaper in Russian language

The court has lifted fines previously applied by Corruption Prevention and Combating Bureau on nine deputies of Rezekne City Council for releasing a newspaper produced by the council in Russian language in addition to Latvian.

Volume of imported petrol in Latvia down 2% in five months

The volume of motor fuel imported to Latvia in the first five months has declined 2% in comparison with the same period of 2017. The volume of diesel fuel has declined 14.9%.

Corruption watchdog ends case about Bi-2 concert in Riga

Corruption Prevention and Combating Bureau ended in May the case regarding possible misuse of administrative resources on pre-election promotion by Riga City Council in the form of a free Bi-2 concert in Lucavsala.

Thailand's rescued boys honour casualty of 17-day rescue operation

In Thailand, a 12 boys trapped in a cave have been rescued in a rescue operation that lasted for 17 days and ended with one casualty, a rescue diver.

Latvian political party Progresīvie to nominate women as candidate list leaders

Latvia political party Progresīvie has revealed its list of candidates for 13th Saeima elections. Five women have been stated as leaders of candidate lists.

Estonia earns 150 000 euros from military evaders annually

Estonian compulsory military service is evaded by about 1 000 young men each year, who have to pay fines that annually exceed the combined total of 150 000 euros.

Chairman: FCMC’s competence should end with termination of licenses if banks are liquidated

In the event of liquidation or insolvency, Finance and Capital Market Commission’s competence should end with revoking affected banks’ license and without the need to appoint an administrator, says FCMC chairman Pēters Putniņš.

Minister: Latvia may terminate MPC system in the next three years

In the next three years or so Latvia could completely terminate the mandatory procurement component system, said Economy Minister Arvils Ašeradens in an interview to Rīta Panorāma programme of LTV.

In pictures: French victory in World Cup celebrated by tens of thousands in Paris

After the football World Cup was won by the French national team on Sunday, an enormous crowd of people gathered in central Paris to celebrate.

Another case of African swine fever infection recorded for domestic pigs in Latvia

African swine fever infection was recorded for domestic pigs in Tērvete on Monday, 16 July. 16 pigs were liquidated because of the infection, as reported by Food and Veterinary Service.

MEP Artis Pabriks becomes political party «Attīstībai/Par!» prime minister candidate

Latvian political party «Attīstībai/Par!» has picked Daniels Pavļuts, Juris Pūce, Ilze Viņķele, Artis Pabriks and Mārtiņš Bondars as its regional candidate list leaders. Artis Pabriks will also be the party’s prime minister candidate.

Russian-U.S. presidents meet in Helsinki

U.S. President Donald Trump and Russian President Vladimir Putin are meeting on Monday in Helsinki.

Heat of up to +30° C expected in Latvia this week

Weather in Latvia will be warm and even hot at times this week, as air temperature reaches up to +30° C. At night, air temperature is not expected to go below +20° C. Many regions will likely experience thunderstorms closer to the middle of the week, Environment, Geology and Meteorology Centre reports.

Newest comments