Taxes will not be raised in Latvia until inflation stabilizes - finance minister

  • 2023-08-07
  • LETA/TBT Staff

RIGA - Taxes in Latvia will not be raised until inflation stabilizes, Finance Minister Arvils Ascheradens (New Unity) said in an interview with the Latvian public radio on Monday.

"We cannot talk about raising taxes until the inflation stabilizes," the minister said.

He also noted that no tax increases are expected next year. "It will definitely not be next year, because inflation is high enough now," the finance minister said.

He noted that tax policy is at a very complicated moment, with strong geopolitical headwinds as well as economic shocks.

At the same time, Aseradens also said that it could not be said that taxes would actually be increased. "I cannot say at this point that taxes will definitely go up," the minister said, adding that four scenarios have been prepared for changes in tax policy, including one where the current tax policy is maintained.

He also said that tax policy must be able to deliver on three key objectives, including the government's ability to cover the rapidly rising costs of providing national security, health care and investment in education and innovation. It must also ensure economic growth, and the public budget must be able to absorb the effects of external economic shocks such as Covid-19 and energy costs.