Latvia’s Prime Minister KrišjānisKariņš promises to find a reliable source of funding to raise wages of doctors and teachers.
In his interview, the prime minister admitted that the funding source found this year – confiscated illegally acquired money – is unstable, adding it is necessary to look for ways to replace it with budget finances.
He is confident this source will be found even though it will require corrections to the tax system. Kariņš said he has already found a solution. Now he needs to convince other coalition partners to support it.
When asked to explain what he means with the often mentioned tax fairness in Latvia, Kariņš said the country has a standard tax payment regime and legal tax regimes with different benefits, which, according to the prime minister, is an unfair situation.
Kariņš said he would like to narrow down certain tax discount regimes and ensure all residents pay social fees, because everyone, not just standard taxpayers, wants support if they end up in trouble. There are also plans to increase the non-taxable minimum.
According to the prime minister, society’s views about taxes are not optimal – people expect good quality state services, but they tend to not pay taxes that would finance those services.