If the Ministry of Economics (EM) proposal to reduce the value-added tax rate to 9% for affected sectors for a period of two years were to be supported, the gap in the budget during that time would be around 90 million euros, Minister for Economics Jānis Vitenbergs (National Alliance) said in an interview with Latvijas Radio regarding the EM calculations.

The minister noted that some sectors are still unable to operate fully and that people's habits have also changed. "Many people who used to use these services no longer do so. They have found other means; for instance, wives are cutting their husbands' hair at home, people are exercising outdoors or have found other solutions," the minister explained.

Therefore, the EM proposes extending the working capital support programme for sectors partially affected by Covid-19 for another two months. "As an alternative that could help all [Covid-19 affected] sectors, we proposed reducing the VAT rate from 21% to 9%. Our neighbouring countries are also doing this. Lithuania also temporarily reduced [VAT] to help those who want to work and are working. (..) To avoid losing competitiveness and to help our companies, we must do this too," the minister stated with conviction.