Latvian ministries have submitted 250 proposals for spending cuts, Finance Minister Arvils Aseradens announced, LSM reports. Ministries have suggested cuts in remuneration, subsidies, goods and services, and other expenditure. The proposals would reduce public sector spending by EUR 150mn in 2026, the Finance Ministry estimated. The ministry targets cumulative spending cuts of up to EUR…
The Latvian government plans to raise the country’s minimum wage in 2025, Finance Minister Arvils Aseradens announced, LETA reports. Under the minimum wage algorithm, the monthly minimum wage will rise to EUR 740 in 2025, EUR 780 in 2026, EUR 820 in 2027, and EUR 860 in 2028. Currently, the minimum wage stands at EUR…
The Latvian government will discuss the listing of state-owned companies and municipal enterprises on the stock exchange in January 2024, LSM reports. The first company to be listed will be national air carrier airBaltic. Finance Minister Arvils Aseradens said that the list would include other companies as well. Enterprises that may be listed include telecommunications…
The Latvian government does not plan to make major changes to taxation in 2024, Finance Minister Arvils Aseradens assured, LSM reports. He said that now was not a good time to make changes in VAT, labour taxes, personal income tax, or corporate income tax. However, the Ministry of Finance will propose raising the excise duties…
Latvia’s New Unity, Union of Greens and Farmers (ZZS), and Progressives have agreed on the distribution of seats in their new coalition government, LETA reports. New Unity will have eight, ZZS will have five, and the Progressives will have three seats in the new cabinet. The Latvian parliament, the Saeima, is due to approve the…
Latvia’s central bank, the Bank of Latvia, supports the Finance Ministry’s plan to introduce a mandatory requirement that banks pay corporate income tax on their profits in advance, LSM reports. Martins Kazaks, governor of the Bank of Latvia, argued that the solution should be permanent, thus ensuring that banks contribute to the state budget every…
The director general of Latvia’s State Revenue Service (VID), Ieva Jaunzeme, has informed the Ministry of Finance that she will not seek another term in office, LETA reports. Jaunzeme will continue to serve as head of VID until the end of her term on 12 February 2024, provided that VID manages to complete tasks set…
Latvian ministries and other institutions have submitted proposals for priority budget measures worth EUR 1.983bn for 2024, according to the Ministry of Finance, LETA reports. Finance Minister Arvils Aseradens said that funding requests were EUR 250mn lower than in 2023. The largest requests were for teacher wages, health care, and defence. Other requests included covering…