Solidarity tax protested at Constitutional Court

A total of nine businesses and twenty individuals have turned to Latvia's Constitutional Court in asking for the abolition of the the so-called solidarity tax paid by high earners, Latvia's Chamber of Commerce and Industry told the press Friday.

The claimants ask for the tax to be lifted and to be compensated what they have paid.

They say the solidarity tax is against strategies expanded in the government declaration, and contravenes documents, ignored by the government in introducing the tax, according to Jānis Endziņš, the head of the chamber.

"The solidarity tax is against Latvia's international commitments on the prevention of double taxation," said Endziņš, saying that it shows Latvia as a country not ready for international cooperation and indifferent about its image.

Previously the Finance Minister, discussing possible tax changes next year, proposed "turning the solidarity tax into a social payment" ensuring that entrepreneurs would have financial incentives for making the payment.

The tax on high salaries was introduced January 1. It's paid from wages exceeding the ceiling for mandatory social security contributions of those who earn a little more than €4,000 a month.

The Finance Ministry earlier estimated that the tax would apply to about 5,000 people in Latvia.

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