Latvia’s state-owned postal services provider, Latvijas Pasts, has submitted a new tariff plan for universal postal services to the Public Utilities Commission (SPRK), LETA reports. The company plans to raise tariffs on the domestic delivery of letters, parcels, and press publications as well as for cross-border postal services as of 2025. Latvijas Pasts said that…
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…
Slowing inflation and strong wage growth in Estonia have increased people’s purchasing power, according to the Bank of Estonia, BNS reports. In June 2024, the consumer price index rose by only 2.5% on year, which was the slowest rate in three years, primarily due to falling energy prices. At the same time, most services have…
Tax-free income in Estonia totalled EUR 4.15bn in 2023, according to the Ministry of Finance, ERR reports. In 2023, the tax-free income threshold was EUR 704 per month for pensioners and EUR 654 for working-age individuals. The ministry does not have a current forecast on the amount of tax-free income in 2024. Former prime minister…
Estonia’s incoming prime minister, Kristen Michal, said that the Estonian Reform Party would not propose reducing or repealing the tax-free income threshold during upcoming talks on forming a new coalition, ERR reports. Earlier, outgoing prime minister Kaja Kallas said that Reform had suggested lowering the basic income tax exemption, but that the party’s coalition partners…
National security, defence, and education will remain the main priorities of Lithuania’s state budget in 2025, Prime Minister Ingrida Simonyte stated, BNS reports. Speaking in an interview with Info TV, Simonyte said that the government would spend a large part of budget revenues to raise pensions, increase teacher salaries, and service the public debt. The…
The Estonian Reform Party has proposed reducing the tax-free income threshold to boost government budget revenue, Prime Minister Kaja Kallas revealed, ERR reports. However, she said that Reform’s coalition partners, Estonia 200 and the Social Democratic Party (SDE), opposed the idea due to its potential adverse impact on low-income earners. Interior Minister Lauri Läänemets of…
Latvia’s State Audit Office (LRVK) has criticised the Ministry of Education and Science for ineffective policies in attracting and retaining teachers, LETA reports. A significant portion of new teachers leave within five years due to systemic issues, including constant changes, insufficient teaching materials, poor remuneration, and uncertainty about reforms. The audit notes that the ministry’s…
Latvia’s Ministry of Economy and Ministry of Welfare have proposed reducing the amount that employers pay for sick leave, LSM reports. Under the proposal, the first day of sick leave would remain unpaid, while days 2-3 would be compensated at 60% of the salary and days 4-8 at 70%. From the 9th day onwards, the…