Government supports the determination of the area of Latgale Special Economic Zone Territories

On Tuesday, 20 December 2016, the government supported the proposals drawn up by the Ministry of Environmental Protection and Regional Development regarding the areas of Latgale Special Economic Zone (SEZ) territories, the demarcation of its territories, the procedures and criteria for updating.
The aim of the establishment of Latgale SEZ is to promote the development of Latgale region by attracting investments for the development of production and infrastructure and the creation of new jobs.
The Law prescribes that THE SEZ will run until 31 December 2035 and its total area will not exceed 5% from the area of Latgale region.
The law does not determine the maximum territorial area of each local government in Latgale planning region, which may be granted SEZ status. In order to be flexible and to be able to adapt to the demands of the business environment, proposals regarding the area of territory to be allocated to each municipality in Latgale planning region, which may be granted SEZ status, will be provided by the Council for Development of Latgale Planning Region.
On the basis of the decision of the Latgale Planning Region Development Council, WE CAN review the draft Cabinet regulations, which will approve the area of Latgale SEZ territories.
The Law prescribes that the territory of Latgale SEZ will be considered as a specific area of SEZ and their borders, and the boundaries of territories are approved by the general administrative act. Accordingly, the procedures for determining and updating the borders of Latgale SEZ territories will be determined by the Cabinet.
At the same time, the governance model of Latgale SEZ is also determined, as well as the role of the Latgale Planning Region Development Council in the management of the zone.
“Latgale local government leaders are aware that with the approval of the law - applying SEZ tax treatment to a significant area of the region, the work on the competitiveness of the region only starts. We expect a favourable treatment of the business environment in these places and Latgale as a whole, creating new jobs in local governments. We are pleased that the ambitious steps taken by the Latgale Planning Region for the development of the region are increasing more support in government” is recognised by Alīna Gendele, President of the Council for Development of Latgale Planning Region.
By approving this draft law, companies that will invest in the relevant Latgale SEZ area will be able to qualify for direct tax relief, namely corporate tax and real estate tax discounts (up TO 80%).
At the same time, the Latgale SEZ Board will be entitled to withdraw the status of this zone for a particular territory if the territory of Latgale SEZ, within the time period specified by the administration of Latgale SEZ, is not suitable for the performance of commercial activities after the granting OF SEZ status, in accordance with the spatial plan of the local government; the relevant local government does not have a favourable effect and has no economic return or, within a year after the decision to include SEZ, the local government area between the manager of Latgale SEZ and the capital company has not been entered into a contract regarding the performance of investments in the relevant territory.
As previously reported, on May 19, 2016, the Saeima in its final reading supported THE draft law “Latgale Special Economic Zone Law”.
More information on the proposals supported by the government can be found here: http://ieej.lv/Ne5CN
The information was prepared by:
Latgale Planning Region Public Relations Specialist 
Oscars Zugickis 
Phone: 65423801
email: oskars.zugickis@latgale.lv