Economics Minister suggests 70 million grant for private sector wages

The Ministry of Economics (EM) plans to redirect €70 million in grants to companies for paying employees' salaries, Economics Minister Janis Vitenbergs (KPV LV) said in an interview to Latvian Television on July 8.

According to him, a company would receive 30% of the taxes paid by it in the form of a single payment. Aid in the form of subsidies or grants is intended for exporting and tourism companies to use it to pay their salaries.

In total, this aid instrument is targeted at 7000 companies, with an employment of around 80,000 people.

The EM acknowledged that the discussion on this aid instrument “may be a little delayed”, but this is due to the fact that EM wanted this aid to be administered as easily as possible. Companies could get that support in August.

In addition, the EM government will push forward a proposal to earmark €50 million for public investments in the capital of companies suffering from the crisis.

On the other hand, reducing the value added tax (VAT) rate to 5% is still on the agenda, the Minister of Economics said, pointing out that the proposal will be pushed again by his party, KPV LV, in the process of drawing up the state budget for 2021.

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