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THE ROLE OF TAX POLICY IN FUNDING THE DEVELOPMENT OF THE LABOUR FORCE

100%
Skapars R., Orehova A.
Humanities and Social Sciences: Latvia
|
2007
|
issue 2(51)
76-88
EN
One of the most essential prerequisites for successful economic growth is an educated and highly qualified worker who constantly seeks to improve his/her professional skills and knowledge. National policy and financial support have a significant role in fulfilling this prerequisite. Various tax relief programmes can be considered as indirect national financial support. The study analyses present system of tax-related stimuli which are available for education and science, describes the advantages and analyses drawbacks. Although there is a general tax relief system for education and science in Latvia and although the current tax policy stimulates the development of education and science, there are certain problems, such as securing donations, assessing the efficacy of tax incentives in covering students' higher education costs and their role in promoting tax avoidance schemes. These problems could be solved by introducing certain changes in the taxation policy.
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