The main part of the revenues of the consolidated budget of Latvia consists of tax receipts, which increased by 673.3 million euros, or by 6%, in the first ten months of this year compared to the corresponding period of 2024, amounting to 11.8 billion euros.
According to bb.lv, the State Treasury of Latvia reported that revenues from labor taxes continue to depend on the tax reform carried out last year (the redistribution of 1 percentage point of state social insurance contributions from the second pension level to the first, an increase in tax benefits for personal income tax, etc.).
According to the State Revenue Service, the wage fund increased by 6%, which was facilitated by the increase in the minimum wage from 700 to 740 euros as of January 1 of this year, as well as the increase in wages for certain categories of public sector employees.
Thus, social contributions amounting to 4 billion euros for ten months of this year increased by 336.2 million euros, or by 9.1%, while revenues from personal income tax for ten months remained at last year's level — 2.3 billion euros.
Revenues from corporate income tax (CIT) for ten months amounted to 718.8 million euros, which is 74.2 million euros, or 11.5%, more than last year. The growth in revenues this year was stimulated by additional receipts in January, related to the behavior of taxpayers who distributed profits at the end of 2024 and paid dividends to individuals.
It should also be noted that there were significantly higher CIT receipts in September of this year, which increased by 33 million euros compared to September of last year. September is traditionally characterized by higher CIT receipts due to the submission of annual reports by medium and large enterprises by July 31 and subsequent decisions on profit distribution. This year, higher tax payments were observed from certain companies in the banking, telecommunications, and gambling sectors.
According to the State Treasury, revenues from value-added tax (VAT) reached 3.3 billion euros, which is 171.4 million euros, or 5.4%, more than for the corresponding period last year, mainly due to increased receipts from the trade sector and some service industries, including transport and telecommunications.
Receipts from excise tax amounting to 1 billion euros for ten months increased by 43.5 million euros, or 4.4%. The largest contribution came from the growth of receipts from petroleum products and tobacco products, which is related to the increase in excise tax rates starting January 1, 2025.
Non-tax revenues of the consolidated budget for ten months of 2025 amounted to 1 billion euros, which is 82.1 million euros, or 7.5%, less than the previous year. The decrease in revenues is mainly related to lower dividend receipts in the main state budget — 36.4 million euros less. It should be noted that overall, lower dividend revenues were planned for the year, expecting lower payments from AS “Latvijas valsts meži” and AS “Latvenergo.”
Furthermore, unlike in 2024, when commercial banks paid 73.1 million euros in contributions to support mortgage borrowers, such a payment is not applicable this year.
