With the 1st of January 2009 new VAT in Latvia is 21%, instead of previous 18%. This was a big shocker for many people especially because life became even more expensive in this not so easy moment.
I am not an economical scholar, however, I remember some things from school times and if I am not mistaken then tax cuts should be for stimulating economical growth, especially now when unemployment is high and people cannot afford to pay back their loans.
Nevertheless, previous government raised VAT in hopes that it would bring more money... and now new government, lead by Valdis Dombrovskis, has admitted that VAT increase has not justified itself, because income from taxes has decreased by 23%. V. Dombrovskis said that his government wont stick to I. Godmanis plan, which suggested in the course of time to increase VAT even higher. PM thinks that country should get back to lower taxes, however, it wont happen this year.
European Commission thinks that decreasing VAT in some sectors, such as clothing, social services and others, would help getting European economics from crises. EU cannot make the participant countries to do one thing or another about their taxes, however, it can suggest ways how to achieve better results.
There are only 5 EU countries which have higher VAT than Latvia (DK-25%, FIN-22%, IE-21,5%, PL-22%, SE-25%).
http://www.db.lv/a/2009/03/13/PVN_paaugstinashana_Latvij?open=sec
http://www.tvnet.lv/onlinetv/lnt/900_sekundes/article.php?id=334375
No comments:
Post a Comment