In order to decrease the shadow economy on the scrap market, the income tax of the population has to be decreased from the current 10% to 5% for private entrepreneurs.
The Latvian association of waste procurement has voiced this to the Ministry of Finances.
At present the higher tax does not allow Latvian companies to compete with other scrap procurers and traders in the Baltic States.
While in Latvia the income tax from the population when selling scrap is 10%, it is only 5% in Lithuania, could be as low as 2% in Poland and is 0% in Estonia.
People from border regions carry their metal scrap to the nearest procurement points in Lithuania and Estonia, as they will get more money there, the association stressed. (Ukrainian metal)
