Polish-owned fuel trading company Orlen Latvija remained the largest single taxpayer in Latvia in 2023, according to the State Revenue Service (VID), LSM reports. VID awarded 20 companies in 5 regions in the large, medium, small, and micro-enterprise categories for their labour tax contributions in 2023. The biggest taxpayers in the segment of large enterprises…
Estonia’s three-party coalition of the Estonian Reform Party, Social Democratic Party (SDE), and Estonia 200 has published its new coalition agreement, ERR reports. Under the agreement, the coalition pledges to cut the budget deficit to 3% of GDP in 2025 and 2026, and to reduce it further in 2027. The new government will raise most…
The shadow economy accounts for up to 90% of the car service sector in Latvia, which has completely distorted competition, Andris Kulbergs, board chairman of the Latvian Automotive Association (Auto Asociacija), told LETA. The total turnover of the shadow economy in the sector amounts to almost EUR 200mn per year, the association estimates. The state…
Estonia’s incoming ruling coalition has agreed to implement budget cuts across all ministries, including defence and interior affairs, ERR reports. Margus Tsahkna, chairman of Estonia 200, said that each ministry would likely face a percentage-based cut to salaries and management costs, and that no new jobs would be created. The coalition plans to extend the…
Lithuania will begin issuing defence bonds after 1 October 2024, Finance Minister Gintare Skaiste announced, BNS reports. The defence bonds will have a maximum interest rate of 2%, which is lower than on savings certificates. The lower rate will ensure that the state borrows for defence at a rate that is cheaper than the market…
Lithuania’s central bank, the Bank of Lithuania, has proposed a comprehensive review of existing tax exemptions, income and wealth taxation, and reducing the VAT gap to increase budget revenue as the population ages, BNS reports. Vaidotas Tuzikas, principal economist at the Bank of Lithuania, noted that Lithuania’s ratio of tax collection to GDP of 4.5%…
The constitutional and finance committees of the Estonian parliament, the Riigikogu, have decided to amend the car tax bill, ERR reports. Earlier, President Alar Karis rejected the bill, arguing that it violated the principle of equal treatment. Constitutional committee chairman Hendrik Johannes Terras and finance committee chairwoman Annely Akkermann said that discussions with various ministries…
The budget and finance committee of the Lithuanian parliament, the Seimas, has approved a proposal to link state budget funding for the public broadcaster, Lithuanian National Radio and Television (LRT), to GDP growth as of 2026, BNS reports. Under the plan, LRT would continue to receive 1% of government income tax revenue and 1.3% of…
Amid rising incomes and optimism about their financial situation, Lithuanians are spending more on food and non-essentials but are increasingly reluctant to dine out due to high restaurant prices driven by rising labour costs and the expiration of pandemic-era tax breaks, LRT reports. While supermarket food sales are boosting economic growth, restaurant turnover has fallen…
