Follow up on recommendations and the High Council meeting
Transport and Logistics
To follow up on the FICIL recommendations in transport and logistics, members of the Transport work group met with representatives from the company ‘Latvian Railways’ (the vice-president of Latvian Railways Arvids Strakšas and chairman of the Board of ‘LDzLoģistika’ Verners Lūsis). During the meeting, the work group members amplified our concerns on the transparency of railway tariffs and transparency in transit sector in general.
Energy and availability of labour
In June, there were two meetings of the National Economy Council devoted respectively to energy and to availability of labour.
On energy, the Ministry presented three scenarios for addressing the issue of competitiveness of energy prices. First scenario foresees that the rise of mandatory procurement component (OIK) will be compensated from the dividends of Latvenergo. The second solution – the government prolongs Subsidised electricity tax till 2020 when OIK is expected to decrease naturally. The third scenario proposed by the ministry predicts voluntary company’s refusal from guaranteed payment.
On availability of labour force, the Ministry presented ideas related to attraction of Labour force from third countries – a draft list of professions (mainly ICT, construction and production related sectors) for which administrative burden will be reduced was presented. The plan will be handed in for discussion and adoption by the Government.
Claudio Rivera, the leader of FICIL Education work group, participated in a meeting devoted to the latest findings of the World Bank on Latvia’s higher education governance and funding that largely reinforce and go in line with the FICIL’s recommendations on Education.
Tax policy and administration
In order to follow-up on the recommendations mentioned in our Position Paper on tax policy and administration and to discuss the private and public sector cooperation, the leaders of the Tax work group (Aija Kļavinska and Baiba Strupiša) met with the Director-General of the State Revenue Service Ilze Cīrule.
Also, representatives of the Tax work group met with Ministry of Finance regarding the changes in legislation on Corporate Income Tax.