Finance Minister to support Revenue Service reform

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The new Finance Minister Dana Reizniece-Ozola on Wednesday said she'll support the new State Revenue Service (VID) initiatives to fight the shadow economy, reported Latvian Television (LTV).

Reizniece-Ozola told LTV that the task of Ināra Pētersone, the head of the VID is to come up with suggestions over how to prevent money laundering and how to act if an employee is caught breaking the law.

The minister said that the last few years tax revenues have been less than planned, and for a large part the blame rests on the lack of VID employees' goodwill.

She also said it's worth asking why the Estonian tax service with 1,000 employees can take in more taxes than the VID with 4,000.

She said that it's better to focus on fewer but more effective measures. A counter-smuggling video surveillance system on the border between Latvia and Russia could be one of them. 

People calling to sack Pētersone will at 2pm today stage a protest by the Cabinet of Ministers. The protest, organized by Rīga City Council deputy Jānis Mārtiņš Skuja, comes as signs of corruption are bursting at the seams of the VID.

In a case revealed by LTV's "De Facto", a former Finance Police employee reportedly inherited half a million dollars from his mother, an underpaid teacher who could not possibly leave such an enormous inheritance.

Last week Reizniece-Ozola announced an that the VID has been tasked with an evaluation of all high-level employees at the Finance Police and VID, as well as with suggestions of how to get rid of dishonest employees, to be carried out until March.

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