Tax authority collects 90m euros more than planned

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The State Revenue Service (VID) collected 90 million euros more in taxes than it originally targeted over the course of last year, Ilze Cīrule, Director General of VID, said January 8 in an interview with Latvian Television's "Morning Panorama".

According to her, the year 2017 was successful in tax collection terms and tax revenue was 7.5% higher than in 2016. 

Cīrule acknowledged that at the beginning of the year there were concerns about the implementation of a revised state social contribution plan, but overall, labor taxes last year were collected by a factor of 10% -12% more than a year ago due to increasing wage rates and many companies wanting to leave the gray economy and regularize tax arrangements.

Asked about tax debts that reached 1.25 billion last year, Cirule acknowledged that of that total around 200-300 million euros might be regarded as active debts.

"Because much of the older debts date from in pre-crisis times, we should work towards getting all accounting in order to really show the real picture, how much we can recover and how we plan to recover it," said Cirule.

As previously reported by LSM, Cirule took over at VID in November 2016 with the organization in some disarray following the sudden resignation of her predecessor just as an ambitious reorganization plan was being attempted.

In the subsequent period she seems to have proven quite effective at improving the standing and effectiveness of an organization that has traditionally ranked pretty low in the estimation of many Latvians.

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