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Latvia Business News: Archive 2003-2006

WEEK 30.2006

Wednesday, the 26th of July, 2006

Novelties in application of VAT in making
The Cabinet of Ministers of Latvia has decided that the Ministry of Finance will have to develop amendments to the Law of Value-Added Tax till July 1, 2007. The Cabinet of Ministers reached the decision based on the Ministry of Finance proposal to apply the EU standards in VAT according to the 6th directive of the Council of the EU. As mentioned earlier, amendments will include such novelties as VAT grouping and deferred payments of VAT for imported goods.
Dienas Bizness

Monday, the 24th of July, 2006

Latvia's prices - half of the EU average
According to the data of the Eurostat, in 2005 price level indices of the consumer goods and services in Latvia were 57 per cent of the average price level indices among 25 European Union member states.

Production has become a lot more expensive
In June 2006, the producers’ prices in Latvian industries increased by 9.7 per cent comparing to the same month previous year. According to the data from the Central Statistical Bureau, the main influence on the index in Latvia was the increase of tariffs of electric power, natural gas, steam and hot water supply; and price increase of food and beverages production. Respectively, 2 and 1.6 per cent were contributed to the total index.

Golden time for Latvian banks
The European Commission researched the profitability of banks in the European Union, which shows that Latvia rates second on profitability, following Ireland. In Latvia there are 23 banks, whose profitability in a year reaches 40 per cent. The president of the Association of Commercial Banks of Latvia, Teodors Tverijons, explained that first of all the profitability of banks is due to increase of market members’ assets, and second – because compared to Europe the difference between the costs of attracted investments and credit price in Latvia is a lot higher. However, Tverijons admitted that this year the profit of Latvian banks would be smaller than previously due to measures taken by the Bank of Latvia to fight inflation.
Bizness & Baltija

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