Latvia must be one of the bold countries that openly consider the need for digital services tax - Benhena-Bekena

  • 2020-01-29
  • LETA/TBT Staff

RIGA - Latvia must be one of the bold countries that openly consider the need for a digital services tax, believes Iveta Benhena-Bekena, head of Saeima Budget and Finance Committee's Tax Policy Subcommittee.

The subcommittee will discuss digital services tax with all stakeholders at the end of February, and will then decide when the tax will be introduced, either individually at national level or at the same time with other members of the Organization for Economic Cooperation and Development.

"We need to be one of the brave countries that can openly talk about the need for such a tax. We support a level playing field for all entrepreneurs," Benhena-Bekena said.

Multinational digital companies operate across borders and perhaps a more rational solution would be to reach an international agreement at a global level, agreeing on principles that would encourage multinational companies to report turnover and pay taxes in the country where their services are provided, said Benhena-Bekena.

The decision on the tax should be well thought out in Paris and Latvia and applied globally on the same principles, because only then will it be possible to collect the tax in each country, said the MP.