ZSA: A solution must be found for the rapid increase in real estate tax on agricultural land

Today, on February 21, the leadership and members of the association "Farmers' Council" (ZSA) will meet with Andris Jaunsleins, head of the Latvian Association of Local Governments (LPS), to jointly discuss solutions to the rapid increase in the amount of real estate tax (RIT) for agricultural land.

Juris Lazdins, Chairman of the Association "Farmers' Council": "The cadastral value of land increases every year, which is why the real estate tax payable by farmers increases. Between 2007 and 2013, real estate tax in some places in Latvia has increased by as much as fourfold. This is felt hard by everyone who works in the countryside. For us, producers, our income has not increased at such a pace. We hope that local governments will understand their entrepreneurs and will be ready to agree on a solution that is satisfactory to all parties."

Farmers will call on the Latvian Association of Local Governments to support the solutions proposed by the farmers, namely to reduce the property tax rate by 50% for land used in agricultural production or to limit the annual tax growth rate, setting it within 10%. An alternative solution will be proposed to review the cadastral value of land used in agriculture once every five years to ensure the necessary predictability in production. In addition, farmers will call for 20% of the paid property tax rate to be directed to the reconstruction, renovation and maintenance of public and municipal drainage systems.

The Farmers' Assembly will be represented at the negotiations by ZSA Chairman Juris Lazdiņš, ZSA agricultural policy expert Mārtiņš Trons, owner of the farm "Vaidelotes" Arnolds Jātnieks, owner of the farm "Pīlādži" Edgars Putra and owner of the farm "Iesalnieki – 1" Ansis Saliņš, and representative of the farm "Mežacīruļi" Oskars Cīrulis.