Latvian Chamber of Commerce and Industry is generally opposed to tax increases - Zarina

RIGA - The Latvian Chamber of Commerce and Industry (LTRK) is generally opposed to tax increases, LTRK Board Chair Katrina Zarina said in an interview with LETA.

"If politicians and civil servants are unable to find areas where they can save money, streamline their work, and shift their focus from spending to investment, then talking about raising taxes to continue financing all the existing inefficiencies... It is very difficult for us to agree to this because it is not good. It is not good to make your work inefficient, it is not good to not evaluate what can has been left undone, not to perform a function audit, but just to continue raising taxes. This is not sustainable," said Zarina.

She pointed out that the LTRK has made proposals and discussed reducing labor taxes, so the organization would not like to see an increase in labor taxes, as this would affect labor costs and the competitiveness of companies in the region and more broadly.

Zarina also noted that excise tax is raised regularly and natural resource tax has also been raised, so value added tax (VAT) is the only tax that has not changed for a long time, and this will be a topic of discussion.

Zarina emphasized that the LTRK is generally opposed to tax increases, but it is necessary to monitor how the situation develops.

She also mentioned that discussions on taxes are always a process, and it is important to understand what will be financed with them and how much money will remain in the local economy.

Zariņa pointed out that when it comes to financing defense capabilities, there is, first, a budget deficit, and second, plans to use the European SAFE loan program, which will have to be repaid in ten years. The question is how much of the funds will remain in Latvia and how much will go to other economies. The Ministry of Defense promises that at least 30 percent of the funding will remain in Latvia, but the mechanism as a whole is rather unclear. Therefore, tax increases will be a topic of discussion, and the LTRK will critically evaluate each proposal, taking into account its impact on the economy.