Saturday , October 1 2022

Politicians Avoid Potential Tax Increase in 2020 / Article / LSM.lv



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Negotiations on next year's budget will continue intensively. Politicians do not hide that, as usual, there may not be enough money for everything, and ways of saving are already being sought. It was said on Monday that several coalition partners are promising tax changes next year. For now, however, politicians are talking more about a possible tax cut, they have not yet revealed which taxes can be raised.

Although the government said earlier in the year it is committed to keeping taxes unchanged until 2021, changes in spending and priorities for next year are likely to change.

"The issue of real estate tax rebates. We will have a proposal. We are thinking of VAT rebates, how to start negotiations with the industries. We will also have a proposal there," said Atis Zakatistov, Parliamentary Secretary of the Ministry of Finance.

The implementation of a reduced VAT rate of 5% on bookstores and restaurants was discussed. True, this will not happen automatically, but with certain requirements that will still have to be agreed. On Monday, the New Conservative Party (JKP) also announced a proposal to raise both the minimum wage to 500 euros per month and the non-taxable minimum next year.

"Well, if there is no money, then there is no money. You can do what you can," said Saeima Budget Committee Chairman Martins Bondars (Development / For!).

In the meantime, CCP Vice-President Krishanis Feldmanis is optimistic that raising the tax-free minimum will cost more than € 100 million, and that should be done next year.

"There is nothing in the government's statement anywhere that says that changes need to be made until 2021. I'm pretty sure that without any changes, the 2020 budget will not be easy for a five-party coalition to adopt. This is frankly, honestly. " Feldmanis emphasized.

Asked if taxes could be raised, politicians were reluctant to answer.

"In any case, it will not significantly affect large sections of the population if it happens," Zakatistov said.

Politicians promise more information about planned taxes and their impact on next year's budget.

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