Home » News » Daugavpils REN discounts for Covid-19 injured entrepreneurs – 120 thousand euros / Article / LSM.lv

Daugavpils REN discounts for Covid-19 injured entrepreneurs – 120 thousand euros / Article / LSM.lv

In Daugavpils, a total of 20 companies and organizations affected by the impact of Covid-19 have received real estate (RET) tax rebates in the amount of more than 120 thousand euros. These are 90% discounts that apply from the beginning of the pandemic. Thus, Daugavpils municipalities hope to reduce the impact of the pandemic on the work of organizations and city companies. The number of companies that will receive such tax rebates is likely to increase.

In the spring, binding regulations on the procedure for granting real estate tax relief came into force in Daugavpils City Council in order to reduce the negative impact of the spread of Covid-19 on economic activity in the city. In parallel, a commission was set up to assess the applicants for this support.

“The decision was made, first of all, because an emergency situation started, a pandemic was declared. And we were approached by entrepreneurs, who were beginning to be adversely affected by this situation, with a request to help with the introduction of tax breaks. At that time, the government also gave priority to the sectors most economically affected by the pandemic. And the council also created its own binding rules and amendments, in which we agreed on all the nuances, ”said Jānis Dukšinskis (Latgale party), deputy chairman of the council and head of this commission.

Taxpayers were eligible for R & D rebates under seven clauses of the binding rules. Discounts were applied to a number of city companies operating in various fields.

“Hotels, catering companies, sports and children’s entertainment centers, shopping centers and pavilions, public benefit organizations could receive 90% relief. Taxpayers had to prove that economic activity is carried out in real estate, ”said Tatjana Zinkeviča, Head of the Real Estate Tax Administration Division of the City Council,

Other categories of entrepreneurs could also receive 90% discounts on R & D & I, if their turnover fell by at least 30% in a crisis situation.

“We have simplified this discount procedure as much as possible. However, due to various circumstances, many who applied to the SRS could not receive this support. We identified priority sectors, and in addition there was an indicator of a decline in volume, ”explains Jānis Lāčplēsis, First Deputy Chairman of the City Council (Latgale Party).

As a result, 90% of R & D & I discounts were received by 20 Daugavpils companies and organizations. “After accepting the applications by July 1 of this year, a total of 38 applications were considered. We supported 20, and in total we granted tax rebates for the total amount of 123 thousand euros, ”said Zinkeviča.

In the spring, the NIN discount is also received in Daugavpils’ largest hotel “Park Hotel Latgola” and shopping center “Solo”. “[Atlaide ir] quite an impressive amount, which helped us to solve some financial issues, ”confirmed Andrejs Nariškins, the director of the hotel and center.

The hotel and the shopping center met all the criteria for receiving support, including in terms of declining turnover. “The relief helped us survive, we had not closed our hotel and shopping center for a second. We gave discounts to our tenants. This tax credit was not superfluous, it was large and it helped to survive the crisis. The worst situation was financially in April, when turnover decreased by 90%. It was a very catastrophic fall.

The situation improved with each passing month, but very slowly, and we could not regain our strength and the situation we had last year.

Even now, starting from this month, the situation is starting to deteriorate, taking into account the current conditions in the world, ”said Narishkin.

He is convinced that Daugavpils was one of the few municipalities in the country that faced entrepreneurs during the pandemic. The fact that such support, as in Daugavpils during Covid-19, is not available elsewhere in Latgale, was confirmed by the City Council of the second largest city in the region – Rēzekne.

“We did not follow this road like Daugavpils, and we did not have such REN discounts. In Rēzekne, in the Covid-19 situation, we determined that the term for payment of this tax is one and postponed until November 16, ”said Ilona Žavoronkova, Head of the Tax Department of the City Council. In Rēzekne, as in most local governments, the term for extension of the REN has been set.

Meanwhile, in Daugavpils does not rule out the possibility that the application of a 90% discount to REN entrepreneurs will continue.

“I think the process will resume now. We also receive applications in the commission and evaluate further. We are seeing the second wave of the pandemic coming and many businesses and institutions in the city, especially children’s centers, are worth suffering. And we will have to think about REN discounts, which is a good reflection for entrepreneurs, ”confirms Jānis Dukšinskis.

In addition, despite these discounts, the budget revenue plan in the city is being fulfilled, stressed Daugavpils City Council.

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