Lobby group: Double taxation discourages re-emigration

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Double taxation of pensions makes it so that people have less incentive to return to Latvia, said Elīna Pinto, head of the Union of European Latvians, appearing on Latvian Radio on April 4.

She said that there are cases of older people, who moved to Sweden during the economic crisis, being discouraged from returning as their Swedish retirement benefits might be taxed in Latvia as well.

Pinto said that many people working abroad - and their relatives, too - are angered by the obligation to pay taxes on money sent to Latvia in sums over €118 and that isn't sent to first-, second- or third-degree relatives.

According to Pinto, such a tax puts an unnecessary burden on those who send and receive the money, as well as the Latvian institutions tasked with monitoring such transactions.

"It seems that the state is using cannons to shoot sparrows," she said.

A petition has appeared at the public initiative portal manabalss.lv over removing double taxation of funds sent to Latvia.

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