_NEWS_PRINTED<br>https://www.dcc.lv/?ct=news&fu=read&id=36<h3>Government approves increasing VAT rate to 22%</h3><p>Anton<br>2010.11.20 09:36
</p>RIGA, Nov 19 (LETA) - The Cabinet of Ministers decided today that standard value added tax rate would be increased to 22 percent, whereas property tax rate for apartments and private homes would be doubled.

Prime Minister Valdis Dombrovskis (New Era) said after the government meeting that the reduced VAT rate would also be increased, from 10 percent to 12 percent, whereas reduced VAT rate on electricity would be lifted altogether.<p>According to the Finance Ministry's estimates, increasing the VAT rates would bring in an additional LVL 68 million in the budget, whereas higher property tax - an extra LVL 6.9 million.<BR><BR>At the Cabinet of Ministers' meeting tomorrow, the Finance Ministry will present two more options to choose from, of which one is to reduce personal income tax by 1 percentage point, increase tax-exempt minimum income to LVL 40, increase tax-exempt minimum benefit for dependent persons to LVL 70, and at the same time increase social contributions rate by 2 percent.<BR><BR>The other option, suggested by the Union of Greens and Farmers, is that 76 percent of revenue from personal income tax be transferred to local governments next year, down from 80 percent now.
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