RIGA — Economy minister Artis Kampars has voiced plans to change the tax rate for microbusinesses from 20 to 12 percent.

The country, ravaged by the crisis, is in desperate need to kickstart the economy again but conditions for starting a new business in Latvia are tough — credit remains difficult to obtain, domestic demand is very weak given the high unemployment and low wages, and a large gray economy remains [private_supervisor]active.

Many small businesses opt to work in the gray economy because they cannot survive paying 20 percent tax on their meager income.

That tax rate will contribute not only to new businesses and employment problems in the country, but also will decrease the shadow economy, Kampars said. If approved, the 12 percent tax rate would be a revision back to the policies taken in the 2008 state budget. Taxes across the board were increased to consolidate the country’s finances after it was forced to accept an IMF-EU bailout in December 2008.

The tax proposal will go to a Saeima committee for discussion.

Last month Prime Minister Valdis Dombrovskis urged the members of the Saeima to work on a tax relief solution for small businesses in the country.

The proposal already has the support of the Latvian Chamber of Commerce and Industry. [/private_supervisor] [private_subscription 1 month]active.

Many small businesses opt to work in the gray economy because they cannot survive paying 20 percent tax on their meager income.

That tax rate will contribute not only to new businesses and employment problems in the country, but also will decrease the shadow economy, Kampars said. If approved, the 12 percent tax rate would be a revision back to the policies taken in the 2008 state budget. Taxes across the board were increased to consolidate the country’s finances after it was forced to accept an IMF-EU bailout in December 2008.

The tax proposal will go to a Saeima committee for discussion.

Last month Prime Minister Valdis Dombrovskis urged the members of the Saeima to work on a tax relief solution for small businesses in the country.

The proposal already has the support of the Latvian Chamber of Commerce and Industry. [/private_subscription 1 month] [private_subscription 4 months]active.

Many small businesses opt to work in the gray economy because they cannot survive paying 20 percent tax on their meager income.

That tax rate will contribute not only to new businesses and employment problems in the country, but also will decrease the shadow economy, Kampars said. If approved, the 12 percent tax rate would be a revision back to the policies taken in the 2008 state budget. Taxes across the board were increased to consolidate the country’s finances after it was forced to accept an IMF-EU bailout in December 2008.

The tax proposal will go to a Saeima committee for discussion.

Last month Prime Minister Valdis Dombrovskis urged the members of the Saeima to work on a tax relief solution for small businesses in the country.

The proposal already has the support of the Latvian Chamber of Commerce and Industry. [/private_subscription 4 months] [private_subscription 1 year]active.

Many small businesses opt to work in the gray economy because they cannot survive paying 20 percent tax on their meager income.

That tax rate will contribute not only to new businesses and employment problems in the country, but also will decrease the shadow economy, Kampars said. If approved, the 12 percent tax rate would be a revision back to the policies taken in the 2008 state budget. Taxes across the board were increased to consolidate the country’s finances after it was forced to accept an IMF-EU bailout in December 2008.

The tax proposal will go to a Saeima committee for discussion.

Last month Prime Minister Valdis Dombrovskis urged the members of the Saeima to work on a tax relief solution for small businesses in the country.

The proposal already has the support of the Latvian Chamber of Commerce and Industry. [/private_subscription 1 year]

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