Latvian government to hold extraordinary meetings to discuss budget
Baku, November 26 (AZERTAC). The government has scheduled more extraordinary meetings for next week in order to further discuss the 2011 state budget, according to LETA News Agency.
As LETA was informed by the prime minister`s press secretary, Liga Krapane, one meeting is currently planned to take place on Monday, November 29, immediately after a meeting of the government committee, while another is planned for Tuesday, November 30, following a regular sitting of the government.
Following a seven-hour meeting last weekend, the governing coalition last week reached agreement over the consolidation measures to be implemented in the 2011 state budget. The current draft budget includes measures to reduce the income tax rate to 25 percent from the current 26 percent, increase the tax-free minimum salary to LVL 45, and raise the minimum wage from LVL 180 to LVL 200. At the same time, employees` social security contributions would be raised to 11 percent from the current nine percent.
The government also plans to raise the standard VAT rate from 21 percent to 22 percent, with the reduced rate increasing from 10 percent to 12 percent. Moreover, electricity would henceforth be applied the standard rate rather than the reduced rate.
Property taxes, which currently range from 0.1 percent to 0.3 percent, would be doubled under the proposals.
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