Tax revenues by August fall €35 mln short of projections

In the first seven months of 2015 tax revenues have been €35 mln less than projected, and July has been worse than the previous months, general director of the State Revenue Service (VID), Ināra Pētersone, told Latvian Television morning broadcast Rīta Panorāma on Tuesday.

Despite that, tax revenues have grown by 4.5% in comparison to last year. It's less than the projected 5.4% growth.

Pētersone admitted that July's revenues are "worrying", especially since next year's budget is soon to be discussed.

Discussing the causes for the revenue shortfall, Pētersone said that the revenues have been cut short by Russian food sanctions. Furthermore, a number of law amendments were proposed - but not implemented - that would have brought €20 mln to the state budget. For example, one of these amendments would have allowed for passing info from credit institutions to VID faster.

On the other hand, the new approach of monitoring separate industries has worked well, plus it's a comparatively cheap method for the state. The service will continue monitoring car repair shops as a number of companies have returned to the grey economy, and VID will turn its sights to to the beauty industry as well.

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