Budget, Financial Services, Latvia, Legislation, Markets and Companies, Wages

International Internet Magazine. Baltic States news & analytics Friday, 28.03.2025, 09:49

Latvian government approves budget draft for 2016

BC, Riga, 01.09.2015.Print version
In an emergency government meeting Monday, the ministers in Latvia agreed on the most significant matters regarding next year's budget – to increase the minimum wage to EUR 370, to implement the differentiated non-taxable minimum, and to increase the general non-taxable minimum by EUR 10, reports LETA.

The 2016 budget is yet to be approved by Saeima.

 

Another solution for a progressive tax system is to implement a differentiated non-taxable minimum, which would significantly reduce the tax burden on low-income earners and increase their income. The non-taxable monthly minimum for low-income earners in 2020 will be EUR 160.

 

Meanwhile, the so-called solidarity tax, which will affect only 4,700 high-income earners with a monthly salary above EUR 400, will help reduce inequality and thus prevent situations when a specific group of persons are able to make significantly lower tax payments from their income.

 

The fact that the tax burden on minimum wage earners is almost the same as for higher income earners, creates a regressive labor tax system.





← Back↑ Up

Русский
Search site