Reviewing tax reliefs is one option being discussed during budget preparations. The documents examined do not confirm an adopted decision to abolish any specific relief. The Ministry of Finance explains that it is preparing scenarios and calculations, while final choices are for the new government.
Information checked on the morning of 14 October 2026. Category: Rumours and Facts.
What do the scope of the review and the revenue scenario mean?
Slide 8 of the Ministry of Finance's 8 October presentation puts reliefs under review at around €600 million: VAT, corporate income tax, excise duty, property tax and deductible expenses. Potential revenue is modelled at €60 million annually from 2028. This remains a scenario.
Stating the total value of reliefs therefore does not mean that the entire amount will become additional budget revenue or that it will be collected next year.
The Ministry of Finance's tax relief assessment explains the methodological distinction: a relief represents tax revenue forgone, but the outcome of abolishing it also depends on taxpayers' behaviour. This assessment is used to explain the concept, not as a document announcing new tax changes.
Why can reducing a relief increase the burden without a new standard rate?
Editorial explanation: a tax rate and the final payment are not the same thing. If an applicable deduction is reduced, the taxable amount can increase even when the rate stays unchanged. If a particular transaction ceased to qualify for a reduced rate, its new treatment would matter.
Businesses should therefore assess a promise to retain standard rates alongside the rules on the tax base, exemptions and transition periods. This is an analytical principle, not a claim that such changes have already been approved in Latvia.
What does the minister say, and what calculations have been mentioned?
In a 12 October interview with Latvijas Radio, Māris Kučinskis said no tax changes were planned for 2027. He linked any subsequent need for changes to the results of reforms.
Meanwhile, LTV's “Kas notiek Latvijā?” reported on 14 October that calculations of scenarios involving increases in VAT, personal income tax and social contribution rates had been prepared for ministers as early as July. We found no publicly available original calculations supporting this report; we attribute the information to the programme.
Calculating an option, supporting it politically and adopting legislation are different steps. The minister's current position is not a guarantee for every future year, while a scenario considered is not evidence of a tax decision already taken in secret.
Rumours and facts: what can currently be confirmed?
- A review of reliefs is on the agenda: this is confirmed by information published by the Ministry of Finance.
- Specific tax increases have been adopted: the materials checked do not support that conclusion.
- All reliefs or tax refunds for documented expenses will be abolished: there is no basis for this generalisation.
Status: an option under discussion; the sources checked do not confirm specific legislative changes. This assessment concerns the scenario examined in this article.
What can a business do now?
The editorial team recommends preparing a short overview of the reliefs that actually affect the business, recording the following for each:
- the legal basis currently used and the type of transaction;
- the impact on prices, profits or employee pay calculations;
- any contractual provision for revising prices;
- the stage of the specific proposal, if one is subsequently published;
- the entry-into-force date and transitional rules, if changes are adopted.
Accounting settings and customer prices should not be changed solely on the basis of a presentation or headline. Decisions should rest on the specific rule and the company's calculations.
The public needs answers about each relief's purpose, beneficiaries and expected outcome. A single total does not reveal who would benefit from possible changes and whose costs would increase.
Official information sources
- Ministry of Finance presentation to the National Tripartite Cooperation Council, 8 October 2026, slide 8
- Ministry of Finance on budget preparations, 23 September 2026
- Ministry of Finance assessment of tax reliefs for 2024 — methodology
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