The management of the largest association of Latvian businesses — the Latvian Chamber of Commerce and Industry (LCCI) — from this week onwards, is to meet with political parties (unions) of the 13the Parliamentary convocation to offer their insight and carry out a constructive dialogue regarding the next year’s draft state budget submitted at the Parliament and changes envisaged by the government in the taxation policy.
Even though the LCCI conceptually supports the draft state budget as it includes proposals for increasing the competitiveness of Latvian companies at least within the Baltic region, by planing to reduce the MSSIC rate by 1 %, the proposed reduction, nevertheless, is insufficient to ensure international competitiveness of Latvia; therefore, the government plan for further reductions of the labour force tax burden to be developed by 1 July 2021 is essential.
The most important objections of the LCCI regarding the planned changes in taxation are related to the reduction of the mandatory state social insurance contributions (MSSIC) and competitiveness of labour force taxes; the introduction of a minimum MSSIC system; covering employees’ costs related to remote work; not imposing any additional labour force taxes to employee costs specified in collective agreements; the reform of alternative tax payment regimes, as well as changes envisaged in the transport tax regime.
The first meetings took place already this week, when the LCCI management welcomed representatives from “Attīstībai/ Par”, “Nacionālā apvienība”, KPV LV and “Jaunā Vienotība”, whereas on Friday, it will hold talks with the Greens and Farmers Union; the meeting times with the other political parties (unions) is to be determined.