Citadele Bank

Citadale Index: Latvian Entrepreneurs Expect Decreased Personal Income Tax and Increased Pensions from the Next Year's Government Budget

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In terms of Latvian government's budget for 2016, the absolute majority of Latvian entrepreneurs support decreasing personal income tax, and increasing funding for increasing pensions and improving road infrastructure, suggests Citadele Index study.

The majority (84 %) of Latvian entrepreneurs indicated that they expect to see a decrease in personal income tax (PIT) from 23 % to 22 % in the Latvian government's budget for 2016. Similarly, 84 % of respondents expect a pension increase next year, and 81 % of entrepreneurs support the increase of funding for improving the situation of motor roads. An interesting matter of fact: entrepreneurs from outside of Riga are in greater support of increasing funding for motor road infrastructure, reveals the latest Citadele Index study.

Smaller support exists for increasing funding for teachers' salaries and national defence. Approximately 67 % entrepreneurs support the increase of teachers' salaries whereas 57 % favour the increase of funding for national defence. Some 38 % of entrepreneurs claimed that they do not support the increase of funding for national defence. Increase of teachers' salaries was not supported by 27 % of respondents.

The proportion of those who were against decreasing PIT was 12 %, and another 13 % of respondents were against increasing pensions. Another 16 % did not support the increase in funding for motor roads. Part of the polled entrepreneurs did not have a concrete opinion regarding these matters; this was mostly related to the increase of teachers' salaries.

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