“I myself consider that this system we've created isn't complete. Unfortunately there are companies who fall through, who are taxpayers, who should be able to receive this support but aren't currently getting it,” said Kariņš.
He said there are of course those companies that haven't been paying taxes, but the system needs to be more elastic for those who have. Kariņš said the issue would be addressed at the meeting of the Cabinet of Ministers on April 23, and that the government has already seen the State Revenue Service (VID) report on the issue. The prime minister has also had a meeting with the finance minister and VID director regarding the situation.
One example of the current system's deficits is Rīga's RB Cafe, which employs mostly people with disabilities and didn't qualify because their fall in profits wasn't big enough compared to March of last year. The prime minister promised to address such catch-22s.
“It doesn't take into account businesses that maybe barely started operations in March of last year, or maybe changed their operations direction in the middle of the summer, developed something new - their turnover grows only afterwards,” said Kariņš. VID is going to present suggestions on changing the algorithm for calculating the government support allotted to each business.
“I'm sure that the revenue service will also improve this system, that we as a state will be more forthcoming toward our honest businesses,” said the prime minister.