Today, the government agreed that the value added tax (VAT) rate would be reduced one percentage point on July 1 this year, from the current 22 percent to 21 percent, whereas personal income tax will be reduced five percentage points in the next three years, from the current 25 percent to 20 percent.

The ruling coalition agreed yesterday that the value added tax (VAT) rate would be reduced one percentage point on July 1 this year, from the current 22 percent to 21 percent, whereas personal income tax will be reduced five percentage points in the next three years, from the current 25 percent to 20 percent, Prime Minister Valdis Dombrovskis (Unity) told reporters after the ruling coalition's meeting.

In January-February, tax revenue exceeded the projected amounts by LVL 77.3 million or 12.9 percent and totaled LVL 676,5 million, LETA was informed by the Finance Ministry.

This past January, the total foreign trade turnover at current prices comprised LVL 1.08 billion, 5.8 percent or LVL 66.4 million less than a month before and 19.6 percent or LVL 176.9 million more than in January 2011, according to the Central Statistical Bureau's data.

Part of corporate income tax revenue should go to local governments, and local governments should also be permitted to introduce their own taxes, Minister of Environmental Protection and Regional Development Edmunds Sprudzs (Zatlers Reform Party) says in an interview with newspaper "Biznes&Baltija".

Latvia and Lithuania must cooperate closer in achieving fair direct payments for their farmers, Agriculture Minister Laimdota Straujuma pointed out after today's meeting with Lithuanian Ambassador to Latvia Ricardas Degutis.

Last year, Latvia's wood exports amounted to LVL 1.10 - 1.12 billion, the highest figure in the past 20 years, according to the Agriculture Ministry's approximate estimates.

Last year, the amount of foreign investment in Latvia-registered companies' share capitals increased by 10.8 percent or LVL 320 million, newspaper "Dienas Bizness" reports.

During a meeting with Latvian Finance Minister Andris Vilks (Unity) in Riga today, Swedish Finance Minister Anders Borg urged Latvia not to delay its goal of joining the euro-zone in 2014, LETA was informed by the Finance Ministry.

The Japanese credit rating agency "Rating and Investment Information, Inc." ("R&I") has upgraded Latvia's credit rating from BB+ to BBB-. The rating outlook is stable, LETA was informed by the Finance Ministry.

The State Revenue Service (SRS) plans to collect LVL 4.23 billion in taxes this year, which is LVL 172.3 million or 4.3 percent more than in 2011, the deputy director of the SRS's Tax Administration, Inese Bahanovska, told members of the press today.

Latvia and Armenia still have much room for potential in strengthening economic cooperation, Latvian Foreign Minister Edgars Rinkevics and Armenian Foreign Minister Edward Nalbandian said during a join press conference in Riga today.

The Economy Ministry has drafted three potential scenarios for the development of Latvia's energy sector, Economy Minister Daniels Pavluts announced during today's discussion of the country's energy strategy for the next 20 years.

In January, unemployment level in Latvia increased 0.1 percentage points to 11.6 percent, according to the State Employment Agency's preliminary data.

In 2011, a total of 68.82 million tons of cargo was handled at Latvian ports, which is 12.5 percent more than in 2010, according to the Transport Ministry's data.

Work must continue on a number of issues for further improvement of Latvia's economic environment, for example - the country's judicial system needs to be upgraded due to constant complaints about long and unpredictable legal proceedings, Prime Minister Valdis Dombrovskis (Unity) announced after today's meeting with the Foreign Investors' Council in Latvia (FICIL).

The State Revenue Service (SRS) collected LVL 4.06 billion in taxes last year, which is 3.4 percent or LVL 134.38 million more than projected, according to SRS' data.

The State Revenue Service (SRS) collected LVL 359.44 million in taxes in December 2011, which is 1 percent or LVL 3.69 million less than planned, according to information available on SRS' homepage.

Consumer prices in 2011 increased 4 percent, including 4.9 percent for goods and 1.6 percent for services, according to the Central Statistical Bureau's data.

Compared to October 2011, manufacturing turnover at current prices, according to seasonally-adjusted data, grew 1.9 percent in November 2011, of which in export - by 0.9 percent, whereas on domestic market 3 percent, "Nozare.lv" learned from the Central Statistical Bureau.

In 2011, Latvia's budget deficit was LVL 426.8 million, which was by LVL 486.3 million less when compared to 2010, and by LVL 66.8 million less than previously planned in last year's budget forecast, according to the Finance Ministry.

In the first 11 months of 2011, the total number of real estate deals has risen 14.7 percent, housing deals - 16 percent, according to the market overview by the real estate company "Latio"

The Register of Enterprises Register of Enterprises refuses to verify documents submitted to it, and it acts "like a blind machine and registers any documents, be they false or not, which fulfill the formal requirements," Swiss attorney Rudolf Meroni says in an interview with the business portal "Nozare.lv", commenting the recent developments at the Ventspils transit company "Ventbunkers".

The Bank of Latvia's external reserves decreased 4.7 percent from November to EUR 4.94 billion (LVL 3.4 billion) at the end of December, as the business information portal "Nozare.lv" learned from the central bank.

8,849 new automobiles were registered in Latvia in 2011, which is 78 percent more when compared to 2010, according to the Latvian Authorized Automobile Dealers Association's data.