With reference to Dienas Bizness questions, Director of ELKO Grupa JSC Janis Casno comments that knowing that presently the state is critically requiring funds to reduce the budget deficit, ELKO Grupa JSC opinion about the government potential initiative to introduce a special tax for household appliances, including computer equipment, is negative for main three factors:

1. Latvia is small and unprotected market, which can be significantly affected by the tax policy and the resulting impact of neighbor countries, especially Lithuania and Estonia.

2. Even already now some tax administration costs in Latvia are inadequately high comparing to the tax revenues, and we foresee that this will be the regular tax, which introduction and administration will be disproportionately expensive for both, the state and enterprises.