Changing taxes this year would be completely unfair, said Latvia’s Prime Minister Krišjānis Kariņš in an interview to LTV programme Rīta panorāma. The PM said there have not been any discussions of Minister of Finance Arvils Ašeradens’ updated tax system audit yet.
At the end of January a meeting is planned with cooperation partners in order to start discussions about what needs to be done to improve the tax system. Kariņš said it is unlikely a solution may come at the end of January or start of February, as discussions may take at least half a year, as the tax system needs to be analysed very carefully.
«We have agreed in the government that the tax system is not something that can be recklessly meddled with.
Currently we have no plans for any [tax] changes,
but once they come, they have to be properly discussed by then,» said the head of the government, adding that changing taxes this year would be «completely unfair», because «it is January already».
When asked if labour taxes could be reduced next year, Kariņš reminded that the previous government reduced a number of labour taxes and increased the minimal wage.
«Choosing the correct way to reduce taxes or make the system more comprehensive and acceptable – this is a challenge all countries are faced with. I’ve not met a single person in my life who said he or she liked paying taxes. Perhaps this is universal, but we all understand this is necessary, because how else are we supposed to finance armed forces, healthcare system and road infrastructure?» said Kariņš. According to him, Latvia’s tax system is competitive, especially for families with children, but there is always room for improvement.
«Reducing taxes would be welcome, I agree. But the question is where and by how much,» he concluded.
As previously reported, Latvia’s Minister of Finance Arvils Ašeradens mentioned in his interview to Rīta panorāma that it may be possible to increase funding to help stabilise certain sectors by reviewing taxes in the second half of 2023.
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