Latvia Parliament Considers Draft Bill on 2026 State Budget

The Latvian Parliament (Saeima) Oct. 15 accepted for consideration Draft Bill No. 1130, on the 2026 state budget and budget framework for 2026-2028. The draft bill includes measures to: 1) apply a reduced 5 percent VAT rate to books, press, and mass media publications; 2) apply a reduced 12 percent VAT rate to essential food items, including bread, milk, poultry, meat, and eggs, from July 1, 2026, to June 30, 2027; 3) allow an optional regime for companies with only individual shareholders, subjecting dividends to a 15 percent corporate income tax upon distribution and a 6 percent individual income tax ...