Deputy Yulia Stephanenko emphasized that Prime Minister Krišjānis Kariņš (JV) had previously promised not to make rapid tax changes, but the current situation showed the opposite. The politician asked how the prime minister justified making these changes if he had previously said that the tax system should not be “jerked right and left”.
The parliamentarian said that many citizens do not know what the changes will be, because they will face the most severe consequences due to the adopted changes in January.
MP Vyacheslav Dombrovskis said that the government assumed without any evidence that all those who received less than the minimum wage abusively evade taxes. The government’s proposal to apply a “very regressive tax”, which is difficult to compare with fairness and the Nordic model, Dombrovskis said. Such a “head tax” has always been very unpopular, it has been the basis for revolutions and has not passed the test of history, the politician said.
Member of Parliament Viktors Valainis (ZZS) called for a postponement of the implementation of tax reform, and he was also joined by Member of Parliament Regīna Ločmele (S). Opposition MP Dana Reizniece-Ozola (ZZS) drew attention to the fact that 180,000 part-time general workers will have to pay up to the minimum social security contributions in taxes. The politician pointed out that previously about a quarter of the entrepreneurs who hired these people were in debt, so she has doubts about the possibilities to cover the new social contributions.
Opposition MP Aldis Gobzems said in the debate that in order to ensure that the Saeima does not adopt amendments to tax legislation that are unfavorable to the population, there must be a mass reaction from the public when taking to the streets. A similar call was made by the politician in connection with the changes in the tax regulation of royalties, as the changes led by the coalition provide for a tax increase for artists.
As reported, on Thursday, after a very long and heated debate, the Saeima in the final reading supported amendments to the Micro-Enterprise Tax Law, which envisages changing the procedure for paying MUN. Opposition MPs have repeatedly called for the law not to be changed so as not to worsen the situation for micro-entrepreneurs.
Amendments to the law have been proposed because a number of shortcomings have been identified in the MUN regime over several years, including its widespread use for tax optimization purposes. The authors of the amendments are convinced that such a practice distorts competition, as well as employees in the MUN regime have very small social contributions, which creates a risk of social security in the future, the annotation of the draft law states.
The amendments stipulate that from next year the MUN payment regime will be available only to the owner of the micro-enterprise. Employees of a micro-enterprise, on the other hand, will be subject to general labor taxes. The employee’s income from the micro-enterprise will be subject to payroll tax and the employee will be insured as an employee.
Others are currently reading
It’s hard to believe, but in 30 years the minimum wage in Latvia has grown 370 times. In 1991, it was 1.35 euros
–
–
–
The businessman sells his motorcycle so he can bake more buns
–
–
–
I learn to say no seven times a day! Rēzija Kalniņa shares her experience
– .
