- Discussion ongoing about raising Latvian standard VAT rate from 21% to 22%
- Standard VAT rate in Latvia is 21%, similar to Lithuania and lower than Estonia
- VAT contributed 3.9 billion euros to state budget in 2023
- Increase to 22% could increase budget revenues by 150-200 million euros
- Arguments in favor include broad contribution, increased spending needs, and fairness for higher income households
- Arguments against include regressive tax burden on lower incomes, potential inflation increase, and negative impact on economic growth
Source: eng.lsm.lv
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
