On Monday, after the meeting of the parties forming the government, the chairman of the “Progressive” faction of the Saeima, Andris Šuvajevs (P), said that he still defends the position that this is a good and suitable solution, because it is time-bound and allows to reduce taxes for more than 90% of Latvian residents.
According to the politician, this finally provides an answer to how to use the second level of pensions for the development of the national economy.
Shuvayev noted that discussions will take place both in the Budget and Finance (tax) Committee of the Saeima, and in the Mandates, Ethics and Submissions Committee, where all arguments will be heard.
A similar position was expressed by the chairman of the “New Unity” faction of the Saeima, Edmunds Jurēvics, saying that it is a very good solution, which he “could not do” for a long time.
The deputy believes that the tax reform will promote the country’s competitiveness and growth, while emphasizing that reducing contributions to the second level of pensions is a temporary solution.
In Jurevic’s view, any major reform will always be ambiguously evaluated, and some people might not like it.
It has already been reported that on September 19, the government supported changes in labor taxes, which envisage an increase in personal income tax (IIN) rates, the minimum wage and the non-taxable minimum, compensating it with an increase in the excise tax and some other taxes.
In order to compensate for the decrease in budget revenues caused by changes in labor taxes, it is planned to transfer one percentage point from the funded pension scheme (second level) to the first level of pensions, allocating 15% to the first level and 5% to the second level, respectively. The solution is scheduled for the period from January 1, 2025 to December 31, 2028.
2024-10-01 04:18:36