RIGA - Higher tax revenues caused by rising prices will make it possible for the state to support those who need to be supported, Prime Minister Krisjanis Karins (New Unity) said in an interview with Delfi portal.
Karins said that tax cuts were always an option for discussion, however, such an approach would not achieve a reduction in prices. For instance, after excise duty on fuel was reduced in France, prices rose to a new record high.
Changing the tax policy would also mean interfering in the operations of the industries affected by the tax changes, said Karins.
Several ministries have been tasked with developing a new comprehensive system of targeted benefits by next week. Karins said he hoped that the ministries would be able to do this so that the state could provide more targeted support that would not depend solely on the recipients' income levels. Karins believes that this is a more effective way to achieve more with limited means.
Karins does not rule out that the support system could be designed so that residents with lower incomes would receive more support, while people with higher incomes would receive less support.
At the same time, support recipients could have an obligation to apply for benefits, which would help screen out those who actually do not require support, said Karins.
As for companies, Karins said that no additional support for companies was being planned at the moment.