PM will not give in to LALRG demands

Oct 31, 2012

RIGA - The talks with the Latvian Association of Local and Regional Governments (LALRG) have concluded and there will be no changes in the division of personal income tax revenue in next year's budget, Prime Minister Valdis Dombrovskis (Unity) emphasized in an interview with the LNT morning show "900 sekundes" today.

According to Dombrovskis, it is possible to redistribute personal income tax revenue between the state and local governments, but not in 2013.

The prime minister reminded about the protocol of agreement signed by the government and the LALRG on September 27. He pointed out that the protocol received overwhelming support during the association's session. Afterwards, "two bosses" - Riga Mayor Nils Usakovs (Harmony Center) and Ventspils Mayor Aivars Lembergs (For Latvia and Ventspils), who did not participate in the meeting, "made a big fuss about it."

As reported, on October 23, Riga quit membership of the LALRG in response to LALRG Chairman Andris Jaunsleinis and Dombrovskis signing the protocol of agreement on the 2013 national budget, stipulating that the share of personal income tax revenue that goes to local governments will be kept at 80 percent next year.

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