The Investment and Development Agency of Latvia (LIAA) has approved 20 foreign direct investment (FDI) projects to the tune of EUR 371.5mn so far in 2023, LSM reports. The projects will create 1,160 new jobs. The investment projects are in sectors such as bioeconomy, ICT, photonics and smart materials, smart energy and mobility, as well…
Estonia’s Finance Ministry has proposed two alternative models for a motor vehicle tax, BNS reports. Under the first model, the tax would be based on the environmental impact of the motor vehicle over its entire life cycle, including manufacture, use, and disposal. Under the second model, the tax would be based on the amount of…
Latvia’s Ministry of Agriculture has proposed that a reduced VAT rate on fresh fruit, berries, and vegetables should remain in place in 2024 as well, Baltic News Network reports. The ministry’s report showed that fruit and vegetable farms in Latvia expanded more rapidly than in other EU countries in 2017-2022. At the same time, imports…
Estonia’s state budget deficit is likely to be smaller than forecast in 2023, the Ministry of Finance announced, ERR reports. In the first five months of 2023, budget revenues increased more than expected due to the rapid growth of wages and rise in prices. Tax revenue was 10% higher than a year earlier. At the…
Inflation continues to fall in Estonia, Rasmus Kattai, economist at the Bank of Estonia, said, BNS reports. Kattai said that the drop was mostly due to the fact that prices for energy and most agricultural commodities were coming down. However, he noted that it took time for the effect of the lower prices to pass…
The advertising revenues generated by multinational digital corporations like Facebook (Meta) and Google (Alphabet) in Estonia are unknown and untaxed, ERR reports. Karin Ulvik, media specialist at the Estonian Tax and Customs Board (EMTA), said that tax authorities had “no aggregated information on such a narrowly defined group of companies.” Collecting such data would require…
Car owners in Estonia face increasing pressure and deserve fair treatment, Simmo Saar, head of the newly-established Estonian Car Owners Association (EAOL), stated, ERR reports. The new association aims to represent the rights and interests of car owners, including in regard to taxation, highway planning, traffic law, penal policy, and traffic education. EAOL opposes the…
The Latvian agrarian political party, Latvian Farmers Union (LZS), has decided to ask the Union of Greens and Farmers (ZZS) to decide on requesting the dismissal of Agriculture Minister Didzis Šmits (United List), Baltic News Network reports. ZZS will be meeting to discuss the request on 4 July 2023. LZS accused Šmits of “inaction” amid…
Tax revenue in Latvia totalled EUR 5.387bn in the first five months of 2023, which was EUR 600.9mn (12.6%) higher than in the same period of 2022, according to data from the Finance Ministry, LETA reported. Tax revenue thus exceeded the budget plan by EUR 166.4mn (3.2%). State tax revenue amounted to EUR 4.241bn (2.8%…