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Latvian artists, producers to rally against VAT on cultural events

Xinhua, November 24, 2015 Adjust font size:

Latvian musicians, concert promoters and producers will stage a rally in front of the parliament house on Tuesday against the government's plan to charge a 21 percent value added tax (VAT) on tickets to various cultural events, according to the organizer of the rally.

The protest is intended to draw the attention of lawmakers and public to what the artists see as an unfair tax measure.

The Latvian Association of Event Producers (LaPPA) is organizing the rally ahead of a crucial meeting of the parliament budget and finance (taxation) committee, which on Tuesday is expected to take the final decision on taxing box office receipts.

More than 300 representatives of Latvia's creative industries signed an open letter to top state officials, including Latvian President Raimonds Vejonis, cabinet ministers and leaders of parliament factions, asking not to throw Latvia's cultural life into stagnation with the 21 VAT on culture and entertainment.

As an alternative solution, the authors of the letter suggest charging a reduced, 12 percent VAT on all cultural events and shows without exception. A petition calling for the 12 percent VAT on culture and entertainment has been posted on ManaBalss.lv public initiatives website.

The 21 percent VAT currently planned by the government is expected to provide 3.1 million euros (3.29 million U.S. dollars) a year to the Latvian budget, according to Finance Ministry estimates. Enditem