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Government supports EUR 4.24 million corporate tax break for Latvijas Balzams
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    Government supports EUR 4.24 million corporate tax break for Latvijas Balzams

    RIGA, Oct 10 (LETA) - The Cabinet of Ministers today approved granting the joint-stock liquor producer Latvijas Balzams a corporate tax break of EUR 4.24 million to support a large-scale investment project being implemented by the company.

    Previously the government had to put off the decision several times as National Alliance requested additional information each time.

    Latvijas Balzams' unaudited financial report for the first half of 2017 said that the company had started a major modernization and reconstruction project to combine its two production facilities into one.

    "Once the project is complete, the company's regional competitiveness will improve, as the project will reduce labor, logistics and production costs," said Latvijas Balzams' management report, adding that the total cost of the project was estimated at EUR 23 million.

    The company then turned the Economics Ministry, requesting a corporate tax break for successful implementation of the project.

    In total, almost thirty companies have received corporate tax breaks since 2012 over their investment projects. These companies include Dobeles Dzirnavnieks, Baltic Crystal, Tervetes AL, AKG Thermotechnik Lettland, Olainfarm, Latvijas mobilais Telefons, Latvijas Finieris, Bite Latvija, Cross Timber Systems, Livonia Print, Plantos, Rigas Piena Kombinats, Aduga, Alfa Agro, Rigas Elektromasinbuves Rupnica, Valmieras Stikla Skiedra and others.

    According to the Economics Ministry's data, the total amount of investment projects implemented since such projects became eligible for corporate tax breaks is EUR 355.1 million, while the total amount of tax breaks - to EUR 79 million. The investment projects have created more than 1,200 new jobs in total.

    • Published: 10.10.2017 15:32
    • LETA
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