RIGA - Discussions on possible tax changes will begin in April this year, Finance Minister Janis Reirs (New Unity) told LETA.
As ministers on Tuesday debated the Health Ministry’s proposal to amend the Healthcare Financing Law, Prime Minister Krisjanis Karins (New Unity) said that the proposal requires taking a broader look at the tax system and might even require some tax changes before 2021.
Reirs indicated at the Cabinet meeting that the situation might be improved by reducing the number of tax regimes. There are currently seven tax regimes in Latvia. After the government meeting, Reirs specified that the debate on possible tax measures have not yet begun and that it is expected to start in April after the government finishes work on the 2019 budget.
Asked to comment on the proposal to revise the tax regulation for microenterprises, the finance minister said that the microenterprise tax is not providing the desired positive effect, which has also acknowledged also by international experts. However, the current tax regime for microenterprises will not be revised in the context of the 2019 budget. The issue will be addressed as part of discussions on systemic tax changes.
“We have resolved to assess those aspects of the tax system that are having a negative impact on business, but we will consult entrepreneurs on all changes,” the finance minister said.
The minister also believes that the government should address the issue of donations to nongovernmental organizations as the latest tax reform has caused these donations to plummet.