The parties are determined to raise the amount of taxes collected to 33% of GDP

Political parties are determined to raise their tax collection to 33% of gross domestic product (GDP), according to a party survey by the Fiscal Disciplinary Council (FDP).

The FDP research data are based on five parties – the "New Conservative Party" (JKP), "From Heart to Latvia" (NSL), National Alliance "For All Latvia!" – "Fatherland and Freedom / LNNK" (NA), "For Development / About!" And "Progressive", because the other parties standing before the 13th Saeima election, or not referred to the FDP call to participate in the poll, or the responses have been submitted too late or in the form of an opinion.

The base scenario foresees that the amount of taxes collected for the next four

The APR estimates that the introduction of tax measures will lead to tax revenues rising to 0.1% of GDP over the four years in comparison with the basic scenario. But the party "Progressives", which has grown by four percentage points of GDP, as well as "Development / For!", Is planning to increase higher tax revenues. – an increase of three percentage points.

The amount of tax that is collected at 33% of GDP at the Progressive level is expected to be reached from 2021, while "Development / For!" this level is planned to be reached by 2022.

Other political parties have not identified any measures that could achieve the purpose of this tax collection within the next four years.

In April this year it was reported that in the Latvian stability program 2018, developed by the Ministry of Finance (FM). -2021

The FM pointed out that Latvia has traditionally been a country with a relatively low tax rate, which also one of the lowest in the European Union. In previous fiscal framework laws, priority was given to increasing tax revenues with a view to reaching one third of the gross domestic product (GDP). Although this goal is maintained, the emphasis will be on others.

The ministry explained that an ambitious tax reform was introduced in 2017 to bring about a breakthrough in the economy, including measures that have a direct impact on the decline in income in the medium term, which is determined by both the reduction of the rate of personal income tax as the abolition of advance payments on corporation tax

"These measures were necessary to improve the business climate by reducing labor costs and promoting the improvement of the balance sheets of enterprises, the GDP is somewhat contradictory The package of tax reforms adopted in this respect is more favorable to obtaining revenues from GDP than the version of the reform described in the previous previous stability program, which contained a measure of economic incentives Rice, "emphasized FM

to the Ministry that it is important now o m to ensure a real increase in income to finance the needs of the country, rather than focusing primarily on the revenue / GDP ratio

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