POSSIBILITIES FOR IMPROVING THE VALUE ADDED TAX POLICY IN LATVIA

In the result of scientific research, we made an inference that an increase in tax revenues, which promotes economic development, can be reached by extending the tax base as well as by applying a selective scientific approach to solving the tax problems, especially in agriculture. In the hypothesis - improving the Latvian tax system is necessary to ensure economic development and social justice - a need of making taxes simple, just, comprehensible, and neutral is emphasised. The scientific findings will be used for improving the regulatory mechanisms for developing certain industries by means of taxes in order to promote sustainability of the national economy in the common EU market. The tax burden has to be differentiated according to income, thus reducing social tension in the country. An improved tax system has to promote the nation's wellbeing and culture and the emergence of a strong middle class by reducing the proportion of poor people in the society. It has to also prove its great economic and social role in the national economy. The Latvian tax system has to be reformed and improved according to the principle of paying capacity, at the same time national interests have to be taken into account.