2020 budget will not be patched with tax changes – Reirs

RIGA – It is not yet clear where to get resources for the government priority measures in the 2020 budget, but it is clear that sudden tax changes will not be used, said Finance Minister Janis Reirs (New Unity) in an interview with LETA.

The Cabinet of Ministers on Tuesday supported the 2020 budget adoption timetable prepared by the Finance Ministry. Prime Minister Krisjanis Karins (New Unity) said that taxes will not be raised in order to find funding for the priority measures, instead systemic reforms will be conducted.

Also Reirs said that taxes will not be changed, but a new solution will be introduced – ministries will have to ensure co-funding for priority measures.

“One of the proposals is that when requiring financing for new priority measures, ministries should be able to ensure co-funding at 15-20 percent. Also those programs that are being financed for years should be revised,” said the minister.

The minister said that all government parties have agreed that taxes could be amended once in four years.

“I cannot tell yet what the next changes will be. I see some possible changes that would not affect business environment,” said Reirs.

The Finance Ministry will also follow the developments in Estonia in relations with excise tax on alcohol.