OREANDA-NEWS. Over two thirds of Latvian entrepreneurs consider that Value Added Tax (VAT) and Income Tax should be decreased from current 18% (VAT) and 25% (Income Tax) to 15% respectively. This conclusion has been drawn up on the summary of entrepreneurs' responses to additional questions in the framework of Parex Index business activity survey, carried out in June this year, reported the press-centre of Parex bank.

Out of 750 respondents, 88,2% have claimed, that in their opinion Income Tax should be decreased from 25% to 15%. Furthermore, 28,5% have noted, that Income Tax should be equal to the Corporate Income Tax, which is 15%. Still, 4,7% of the respondents have not supported the decrease of the Income tax: 3,2% are convinced, that the income rate should not be decreased because of the high inflation level, 1,5% are against the decrease as this would cut down local government budget revenues. Notably, that 41,7% of the respondents have supported the Income Tax decrease, provided it is also applicable to the proceeds from equity growth, whereas 33,2% have voted against this.

70,5% of the respondents have supported the overall VAT rate decrease to 15%. Besides, 14% of the respondents have stressed, that the VAT rate decrease is only reasonable for food products, whereas other products and services should remain liable to the current tax rate of 18%. 11,3% of the respondents have supported the current rate of 18%, and only 0,4% of the entrepreneurs have supported the increase of the rate up to 20%.