Some Tax Advice for Latvia

Abstract

Although this paper says a few words about the tax system of Latvia, Latvia's tax situation is not unique. Many of the problems and policies that now exist in Latvia also exist in most other emerging market economies. Thus, the scope of this paper encompasses the tax systems and problems of any emerging market economy. The Latvian case is used only as an example for illustrative purposes. Part I of this paper provides an introduction and overview. Part II discusses the attributes of a good system of public finance. Part III addresses the special problems of raising revenue in an emerging economy. Part IV discusses the Latvian tax system. In Part V, the author makes recommendations for Latvia and other emerging economies.

JEL Classification: H2, K34, O23, P35