No new taxes or tax rates being planned at the moment - PM

RIGA - No new taxes or new tax rates are being planned at the moment, Prime Minister Evika Silina (New Unity) said in an interview on TV3 channel Wednesday.

"We are doing this deliberately," said Silina, commenting on tax issues. The prime minister did not deny that the tax issue is raised from time to time.

Silina said that the aim now is to boost Latvia's economy, to get ahead of others, including through cost saving and a smart use of European funds, as well as to prevent the national economy from falling into stagnation.

The prime minister said that one of the government's primary objectives was to cut red tape, including in the banking sector, and to boost lending, as this stimulates economic activity.

Silina noted that last year a solidarity levy was introduced for banks, which can be waived if they reach a certain level of turnover and lending. She welcomed the fact that lending had already increased.

"We cannot bring more money into the Latvian economy just by increasing taxes. It is important to have more finance in the Latvian economy," the prime minister said.

She also underlined that while looking for ways to save public funds, there are some untouchable groups, such as mothers. The prime minister explained that the government does not want to cut back on the services available to the population.

As reported, to increase funding for national defense and security, the government on Tuesday decided to create a Defense and Security Fund.

The decision shows that the Cabinet of Ministers plans to move towards spending 5 percent of gross domestic product (GDP) on national defense and security needs, NATO capability objectives and military support to Ukraine by 2026.