It is clear that changing property tax is not possible at the moment - PM Karins

  • 2020-08-17
  • LETA/TBT Staff

RIGA - It is absolutely clear that changing property tax is not possible at the moment, Prime Minister Krisjanis Karins (New Unity) told journalists following today's coalition cooperation meeting. 

The premier said that the government coalition has been debating various tax changes for more than a year already. 

"It is absolutely clear that any changes to this tax are currently impossible. The difficulty is that there are two parts of the issue - the new cadastral values, which have been calculated, and the tax, which has to be calculated. The first step has been taken but the second has not, because it has to be debated by the broader public, not just within the coalition of five parties," Karins said.

Karins noted that the Covid-19 crisis delayed the solving of the property tax issue, and if not for this crisis, the process could probably be completed by this fall. 

The prime minister said that the property tax issue has been put on hold until 2022, adding that the deadline could be further extended to reassure people that there will be no unpleasant surprises.

"This is not one of those taxes that the coalition is considering as an opportunity to increase budget income. Our goal is to put the system in order, not to raise the property tax. This government is not going to raise the property tax. The cadaster has been calculated, and now it is necessary to revise the tax rates downward," the prime minister said.