The most significant problem for the government of Latvia is increasing the gross domestic product (GDP) as well as GDP per capita by means of a reasonable and well-considered financial and economic policy in relation to the elaboration and implementation of the principles of tax policy carried out in the interests of the population, as well as by decreasing the corruption level and the "shadow economy". The law "On the Corporate Income Tax" in Latvia sets a proportional rate of this tax that originally was 25% of the company profit, but since 2004 it has been changed, and set at the rate of 15% of the taxable income. At present the corporate income tax not always serves the interests of Latvian population as all enterprises have an equal tax rate regardless of the profit obtained and the ability of enterprises to pay it.
