Friday, the 3rd of June, 2005
After joining EU European investments in Latvia have increased
On June 2, the Foreign Investors Council in Latvia met representatives of Latvian government. The investors suggested to develop labour market and think of Latvia's long-term development strategy. They also pointed out that Latvia should improve relationships with Russia. That would foster transits. The investors acknowledged that after Latvia's accession to the EU the European investments in Latvia have increased. However, in such industries as transport and logistics foreign investors are investing more in Lithuania and Estonia.
Thursday, the 2nd of June, 2005
To ask more of employers
The government has decided to increase the penalties of violating the Law on Labour several times due to frequent violations of it. For the first violation a physical entity will have to pay a penalty of up to LVL 250 and a legal entity - up to LVL 500. If the violation is made the second time within a year the fine will double. For some violations the penalties are even higher. If a company is caught twice for illegal employment it will have to pay LVL 2,000. A fine of LVL 5,000 will be asked for repeated inobservance of safety measures or not having an investigation in a case of accident. If the employer hides or does not investigate a case of accident resulting in serious injuries or death for the second time she or he will have to pay LVL 10,000.
Biznes & Baltija
Wednesday, the 1st of June, 2005
Government harmonises taxes
On May 31, the Latvian government accepted Activity Plan For Business Environment Improvement. The document also includes having the same income tax, 15 per cent, for all of the domestic entrepreneurs as of January 1, 2006, and cancelling strict accounting waybills. These waybills will still be required for oil products, alcohol, cigarettes and medicine. Range of useful innovations in administrating VAT are also included. By December 30, the Ministry of Justice will have to prepare a new law on insolvency that would better protect the interests of creditors. The Ministry of Economy will have to prepare a plan for Public-Private Partnership for 2005-2009.
Biznes & Baltija
Thursday, the 31st of May, 2005
Joint ventures die off
After the end of the Commercial law reform the number of joint ventures registered in Latvia decreased by one third, as well as the amount of the direct investments into their fixed capital. Before 2005 the join ventures from 116 countries were registered in Latvia, but now from 101 states. There are no more joint companies with Brazil, Taiwan, Iran, Egypt and some other countries. 961 enterprises with Russian capital stopped working, as well as 494 enterprises with the US capital, 447 with German capital and 427 with Estonian capital.
Monday, the 30th of May, 2005
Introduction of euro could cause new jump
If Latvia joins Euro-zone in 2008, the local traders could use this moment for raising the prices, as it happened in many European countries before. However, if in Belgium and Austria governments were taking measures for preventing the growth of prices, the Latvian government does not have any actions plan. The Minister of Finance, Oskars Spurdzins, thinks that any regulation of prices could have a negative influence. He allows the possibility of higher inflation, though not so high as after Latvia's accession into the EU. The Bank of Latvia advises to indicate the prices both in lats and euros from 2007.
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