The Latvian government has agreed on a number of tax measures within the framework of the draft Budget for 2016. The most significant matters regarding next year’s budget are to increase the minimum wage to EUR 370, to implement the differentiated non-taxable minimum which would significantly reduce the tax burden on low-income earners and increase their income, and to increase the general non-taxable minimum by EUR 10.
The non-taxable monthly minimum for low-income earners in 2020 will be EUR 160. The so-called solidarity tax, which will affect only 4,700 high-income earners with a monthly salary above EUR 400, will help reduce inequality and prevent situations when a specific group of persons are able to make significantly lower tax payments from their income. Excise tax will be raised on tobacco leaves, liquids for electronic cigarettes and alcoholic drinks.
The draft national budget for 2016 should be submitted to the parliament on September 30.
