8Financial tools to maintain welfare society IP MEP Ageing in EuropeFinancial tools to maintain welfare society
9Welfare Death related benefits Disability and illness Careers Families and childrenUnemployed peopleSocial welfare payments and workFarming and fishingExtra social welfare benefitsEducationOlder and riterided peopleSupplementary Welfare Schemes
10Tax system in Latvia Consolidated Budget Government budget Local governmentGorvernment basicLocal government basicGovernment special budgetspecialbudget
11Government basic budget Government special budget TaxGovernment basic budgetGovernment special budgetLocal government budgetCorporate income tax100%Individual income tax20%80%Real estate taxThe state social insurance paymentsValue added tax
12%Before working ageWorking ageRetired peopleNatural increase20081464,921,1-7 058200914,165,220,7-8 220201014,264,7201164,221,6-9 900201214,363,622,1-9 300
13Taxes as a financial tool to maintain welfare in Latvia Personal income taxState mandatory social insurance paymentsValue added taxReal estate tax
14Personal income tax characteristics in Latvia An individual is liable for tax on his incomeas an employeeas a self-employed personindividual must meet the requirement of residence in LatviaEmployer is obligated to deduct the amount of income tax and national insurance
15State Mandatory social insurance payments income gained by an employeea set of measures organised by the State
16Three-Tier Pension System in Latvia The First Pillar (state compulsory unfunded pension scheme);The Second Pillar (state funded pension scheme);The Third Pillar (private voluntary pension scheme).
17Devision between 1st and 2nd in budget Years1st tier2nd tier18%2%200716%4%200812%8%2009201020112012no
23Participation of other organisations Local governments:Partial refund of the of money that has been spent for the medicine;Partially covered expenses for public utilities;Local communal apartments;Etc.Red Cross;Latvian Support Association for low-income people "DACE“:To provide information about legal and social issues,To organise free cultural events,To arrange art exhibition of disabled children "The world around me“.
24ConclusionsBenefits are provided by Special government budget which is formed each year and it consists of contributions from pension insurance, dividends and other income;Latvians can improve their future pension with 3rd pension level or universal life insurance;Latvia has unarranged pension system;Pensions and benefits depend on paid in to a budget taxes;
25Conclusions (2)The negative natural increase and migration creates a negative impact on pension and benefit system of Latvia;Planned special budget cannot cover all needs on benefits and pensions;Local governments has been considered as an essential support to elder people;Low - income people receive help from non-profit organizations;People live with no vision about their future and old age.
26SuggestionsPeople should choose Universal life insurance with savings and with attraction of funds;Government must motivate to pay taxes;System of paying pensions should be improved and labor must be educated;To improve birth rates country should provide well-prepared benefit system;We need to produce new generation to pay taxes for our future pension and different benefits;
27Thank You For Your Attention!!!! Paldies Par Uzmanibu!!!Thank You For Your Attention!!!!