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Taxes cannot be lowered

By Editor . 25.03.2009

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There are currently no options to reduce taxes, Prime Minister Valdis Dombrovskis said in an interview on Latvian State Radio today.


He admitted that, from the point of view of the economy, taxes should be abated, however, agreements with international financial institutions, signed by the previous government, foresee that, if budget revenue lags behind the plan, the government has to consider further tax increases. The agreements do not envisage the option to lower tax rates at all. Thus, now in talks with the international lenders, the government can only hope to reach a consent on not having to raise taxes even more.




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