Companies will be able to apply for tax deferrals, aid for working capital, wage subsidies

RIGA - During the state of emergency, companies affected by the Covid-19 restrictions will be able to apply for tax deferrals, aid for working capital, and wage subsidies, Economics Minister Janis Vitenbergs (National Alliance) told LETA.

Finance Minister Janis Reirs' (New Unity) task force agreed in principle on the support measures on Thursday.

It was also decided that the state would cover vaccinated employees' sick leave from the first day, so they could stay home and take Covid-19 tests if necessary.

Business associations made it clear at today's meeting that they could do without downtime payments this time.

According to the Finance Ministry, Reirs' task force decided today to continue work on grants for working capital, workplace subsidies, payments of vaccinated residents' sick leaves from the first day, and tax deferrals for those taxpayers who may not continue operations for the duration of the state of emergency.

The task force's next meeting will take place on October 15.

During today's meeting, Latvian Chamber of Commerce and Industry and Latvian Employers' Confederation did not support continuation of downtime payments, which is why this type of support will not be considered.

Reirs believes that support measures must foster vaccination. "Vaccination is the best support - as soon as there are enough people vaccinated, all the restrictions will be lifted," he emphasized.

As reported, the government has declared a state of emergency until January 11, as well as additional restrictions with the aim to curb the rapid spread of Covid-19 in the country.