The New Conservative Party (NCP) and the National Union (NA) have expressed a negative attitude towards Ministry of Finance At a co-operation meeting on Monday, August 17, the ruling coalition postponed the examination of this issue, which was already on the agenda of Tuesday’s government meeting, the informative reports prepared by the Ministry of Finance and the proposals for changes in tax policy published a week ago.
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In a conversation with journalists after the remote coalition meeting Prime Minister Krišjānis Kariņš (JV) said the coalition has agreed to continue work on possible changes or improvements in the tax system, so the issue will not be discussed at the government meeting on Tuesday.
“There are a number of things that still need to be discussed and the best solutions found. The first is that any change will result in a better situation for families with children rather than a worse one. It is a political setting for tax change to benefit families with children. “How can we do that, including reviewing and developing slightly different rules for state family benefits? The second issue is that we will continue to assess in the tax context whether we can further relieve low wages. The third is to look at different ways we can earmark budget resources for health care,” War.
He recalled that so far the model for health care has been evaluated to allocate an additional 2% of the state social insurance mandatory contributions (SSIAI) and 2% of the personal income tax (PIT). “There is also a model where it would be only from the PIT, and also that 1% of the SSIAI and the rest of the percentage of the PIT. It’s just an internal redistribution, but there are other options possible and we will continue to work. The goal is to make We have already said a lot, and there is already an ideological agreement on a lot, but before we look at the issue in government, I would like to address the important aspects – favoring families with children, relieving low wages. and earmark funds for health care, “explained Kariņš.
Minister of Justice Jānis Bordāns (JKP) acknowledged that his party did not support the tax reform proposal submitted by the Ministry of Finance, because in the party ‘s opinion, it is not allowed to raise taxes in a recession. The current proposal of the Ministry of Finance envisages raising the tax burden in at least five categories, and this proposal does not address the issue of the high tax burden on small salaries, Bordāns said. “The Prime Minister rightly mentioned that the Ministry of Finance’s offer for the reform of the state family benefit should be awaited first, which would rapidly improve living conditions for families with children. There is no response from the Ministry of Finance on the offer of REN rates. partners – LCCI, LDDK, LPS and known economists. Therefore, together with the coalition partners, when coming to this offer, it was decided not to view the informative report prepared by the Ministry of Finance on Tuesday, but to continue discussing it, “Bordāns admitted.
Member of the Saeima Ilze Indriksone (NA) acknowledged that the party could not support the information report prepared by the Ministry of Finance on changes in tax policy. “No matter how important it is to promote public social and health insurance, this must never be done at the expense of the most vulnerable. We have realized that these proposed changes would have the most negative impact on families with children who are already unable to take full advantage of dependent tax benefits. “We definitely have to correct it with the reform of the state family benefit. We are ready to do it and get involved in further discussions,” explained Indriksone.
The second section that is of great concern to the NA is the abolition of royalties as such, which would significantly change the situation in the cultural sector, which will already take a long time to recover from the crisis. The NA has always supported the introduction of a minimum SSIAI, but the MoF report contained conflicting information on the shoulders. “We are ready to continue the negotiations,” Indriksone explained.
Responding to a question from the portal “Delfi” about possible red lines and ultimate actions on the part of these two partners, Indriksone said that the NA does not have red lines, it is ready for negotiations and compromises. “We have also heard from our partners our readiness to meet,” the deputy admitted.
Mr Bordan also emphasized that the JKP did not have any red lines, but that the party’s position was related to the fact that tax policy had to be addressed in a complex way. “We cannot pull out one tax that we are going to finance one sector with, and that will be tax reform. So I believe that no negotiations on tax reform have really started. Let’s wait for a proposal from the competent ministries for reform and then discuss,” said the Minister of Justice. that it has not dealt with the R & D reform proposal during the year.
Delphi has already reported that The Ministry of Finance proposes to introduce tax changes in three stages, initially earmarking a compulsory health insurance contribution of five percentage points, without increasing the overall labor tax burden, but by redistributing the rates of the mandatory state social insurance contribution (SSIAI), personal income tax (PIT) and solidarity tax.
The Ministry has submitted an informative report to the government for discussion on the development directions of tax policy for the promotion of the sustainability of state social and health insurance.
In order to address the identified problems related to the inadequacy of social and health security for employed persons, it is planned to introduce tax changes in three stages from next year.
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