He stressed that the new cadastral values, which provide for a significant increase in a large part of housing, will not come into force until the abolition of R & D for primary housing, initiated by TM, is accepted. “The values will not come into force until a law is passed that will be fair to Latvian society,” the Minister emphasized.
He also noted that at today’s inter-institutional meeting there was some support for the ministry’s idea, noting that the ministry is still being asked to clarify various details, some of which TM is ready to correct, but some are aimed at delaying the adoption of the law. Accordingly, the Ministry will clarify certain details before proceeding with its intention.
Commenting on his readiness not to direct the approval of the new cadastral values in the government if there is no support for the abolition of RET for primary housing, Bordāns emphasized that he sees nothing wrong if the government “shakes up” on issues that address social justice issues.
Taking into account that the cadastral value is also the basis for the calculation of real estate tax, the Ministry of Justice prepared amendments to the State Real Estate Cadastre Law and the Law on Real Estate Tax a year ago, which provide for the abolition of real estate tax for primary housing up to 100,000 euros. This would mean, for example, that for a primary dwelling with a cadastral value of 80,000 euros, the real estate tax payment would be 0 euros, but for a dwelling with a cadastral value of 120,000 euros, the REN would be calculated from the value of 20,000 euros. A similar principle would be applied to land under primary dwelling, stipulating that in these cases one-fifth of the cadastral value is used for tax calculation. For example, if the cadastral value is 10,000 euros, then currently the real estate tax is 150 euros. After the introduction of the TM offer, they would be 30 euros.
The previous inter-institutional meeting did not support the ministry’s proposal.
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