Economist: Major tax cuts in Latvia not realistic at present
Luminor Bank chief economist Pēteris Strautiņš says Latvia currently has no room for significant tax cuts, and any party promising such cuts before elections would be showing a weak grasp of reality.
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Pēteris Strautiņš, chief economist at Luminor Bank, told the LETA news agency that Latvia currently lacks the fiscal capacity to implement a significant reduction in taxes.
According to Strautiņš, if any tax reduction were to happen at all, it would likely be only symbolic or decorative rather than a change that would be genuinely felt by residents or businesses.
The economist stressed that if any political party were to promise substantial tax cuts ahead of an election, this would more likely indicate that the party has a weak connection to the actual economic situation, rather than reflect a realistic and achievable plan.
Strautiņš expressed this view in the context of the LETA interview without laying out detailed calculations or specific state budget figures, instead pointing in general terms to the current financial constraints that prevent broad tax reforms aimed at lowering the tax burden.
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