RIGA - The Latvian government has approved a VAT tax increase to 22%. Moreover, the Cabinet agreed to a plan that would double the property tax rate for apartments and private homes.
Electricity would no longer be subject to the reduced tax rate. The reduced tax rate itself would be increased to 12% from the current 10%.
The approval comes as the Finance Ministry continues to work out alternative tax plans that would help bolster next year;s budget and reduce the severity of cuts.