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Government supports VAT and income tax reductions...
RIGA – On May 15, the government agreed that the value added tax (VAT) rate would be reduced from the current 22 percent to 21 percentstarting July 1 this year, whereas personal income tax will be reduced by 5percent in the next three years, from the current 25 to 20 percent.
The final decision will be up to Saeima.
According to the Finance Ministry's calculations, reducing personal income tax by 1 percent in 2013 will leave the budget with 33.2 million lats (47.2 million euros) less in revenue.
On the other hand, the reduction of the VAT rate from 22 to 21 percent thi... Full story...
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