Tax debts have increased to EUR one billion in Latvia

Tax debts increased during the COVID-19 crisis, reaching a billion euros, Ieva Jaunzeme, Director General of the State Revenue Service (VID), told Latvian Television September 8.

“All extended debt, which is nearly at €300 million, goes into debt. Even if the company came and extended [the due date], it is debt,” Jaunzeme said.

She welcomed the fact that companies in COVID-19 came to the VID and agreed to an extension of their debt payment.

Overall, in the first seven months, the budget implementation is rather good compared to what we could have expected, said Jaunzeme.

Regarding the crisis caused by COVID-19, Jaunzeme pointed to people receiving downtime benefits but did not meet the relevant criteria and had to repay the aid received. This could be attributable to 4,000 employees.

“Of course there are different circumstances, but it should be remembered that the VID started this project within two weeks. It really hurts me to read that there is an arrogant and mocking attitude to this request [to repay unduly received benefits] if there have been mistakes,” Jaunzeme said.