No changes to microenterprise tax before new regulation

The planned overhaul of the micro enterprise tax charged on small companies in Latvia will be postponed until the adoption of alternative regulation, Prime Minister Maris Kucinskis and Economics Minister Arvils Aseradens agreed with the Latvian Chamber of Commerce and Industry (LCCI) on Friday, reported LETA news agency.

LCCI chairman Janis Endzins told LETA that the amendments to the Law on Micro Enterprise Tax, which Saeima passed in November, will not come into effect under the latest agreement.

Kucinskis told journalists that the Economics Ministry has been ordered to work out an alternative regulation by April 2017, and that these proposals will be reviewed in the context of overall tax policy changes. The prime minister indicated, however, that the government’s plan to overhaul the regulation of micro enterprise tax has not been cancelled.

“If the government fails to work out a new regulation, the enterprises will be able to operate in accordance with the existing regulation,” Kucinskis said.

LCCI president Aigars Rostovskis voiced satisfaction that the current regulation will remain in place until it is replaced by a new one. “This is the main message to those operating as micro enterprises, that they can continue their work without stress,” Rostovskis said.

Aseradens said that the Economics Ministry would not hurry with drafting the new tax regulation for micro enterprises. He said that this work would include research, data analysis and drawing up recommendations to develop a regulation that would support both small enterprises and lifestyle businesses.

Previously the plan to phase out the micro enterprise tax by 2019 was among the law proposals president Raimonds Vejonis was considering to repeal for repeated review at the Saeima.

Seen a mistake?

Select text and press Ctrl+Enter to send a suggested correction to the editor

Select text and press Report a mistake to send a suggested correction to the editor

Economy
Economy