No major tax measures planned in Latvia for 2016: PM

The Latvian government is not planning any major changes in the existing taxation system for next year, Prime Minister Laimdota Straujuma told journalists Thursday.

Speaking to the press following a meeting of the National Tripartite Cooperation Council, which brings together representatives of the government, business organizations and trade unions, the premier indicated that a hike of value added tax (VAT) or any other significant tax measure was not even being considered.

"I would like to reassure you that there are no plans to increase VAT or any other key tax," Straujuma said.

The prime minister noted at the same time that a debate was on-going about cutting the personal income tax rate by one percentage point. "We are having tough negotiations with the Latvian Association of Local and Regional Governments on the issue, and I have said that we might propose adequate alternative solutions [if the personal income tax rate is not reduced], for example, a downward correction of social tax," the premier said.

Straujuma also indicated that the government might decide to increase excise tax or natural resources tax, but that for the time being there are particular plans regarding tax hikes for 2016.

The government is due to start work on Latvia's 2016 budget in the summer. Endit