Latvian PM Kariņš: Tax system changes are not expected

The new coalition forming the next government has agreed not to change the tax system in times of crisis, Prime Minister Krišjānis Kariņš (New Unity) said in an interview on Latvian Television November 30.

Kariņš commented on the situation in the formation of the government: “At present, work is at a very normal pace. [..] There are no disputes or misunderstandings. We've got through it."

The next government would aim to achieve an economic transformation. Now the parties are going through all sections of the future government declaration. “Everyone brings their own personal views. And now we are looking at everything, whether it will work and how it will help the transformation of the economy,” he said.

There are no disputes in these talks, but “very interesting discussions,” said Kariņš. 

At present, the aim is to reach an agreement on the government declaration and, immediately after the establishment of the government, to get to work on items where there is a common understanding. But discussions will continue on topics that have no consensus, including on the tax system as a whole.

“There's a very interesting discussion. All agreed on a couple of principles. One: we will not tighten up the tax system, we will not change anything at this time in times of crisis. And we plan to do it in the same way as in the previous cycle, once every four years; if we change taxes, then do it once, discussing it not only among politicians but also with the social partners. So no surprises are expected in terms of taxes,” Kariņš said.

He acknowledged that, in general, parties have different views on improving the tax system.

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