Riga, Oct 9 (LETA) - The Saeima on Thursday supported in principle the inclusion of the Aluksne municipality in the Latgale Special Economic Zone (SEZ).

Amendments to the Law on the Application of Taxes in Free Ports and Special Economic Zones were also approved in the first reading.

It is planned to include Aluksne municipality in the Latgale SEZ so that Aluksne entrepreneurs can benefit from the tax incentives provided by the SEZ.

As reported, the Latgale SEZ has been operating since 2017. The SEZ has become one of the most important development tools in the region, as by investing in the development of their company or creating new jobs in the Latgale planning region, a company can receive an 80 percent discount on both income and real estate tax. The authors of the amendments from the Smart Administration and Regional Development Ministry have pointed out that the municipality has the possibility to grant an additional 20 percent discount, allowing entrepreneurs to actually receive up to 100 percent discount on real estate tax.

The amendments aim to increase the competitiveness, exports and productivity of businesses in Latvia's eastern border region, which is defined as all municipalities in the Latgale planning region and the municipality of Aluksne, which borders Russia.

According to the information gathered by the ministry, by September 17 this year the Latgale SEZ Authority had concluded 94 agreements with companies with a total investment of EUR 111.59 million. The concluded agreements foresee 715 new jobs, 405 of which have already been created.

The companies operating in the Latgale SEZ include, for example, the optical fiber company Light Guide Optics International in Livani and the technical fiber producer Nexis Fibers in Daugavpils.

The benefits of the Latgale SEZ for the Aluksne municipality, as mentioned by the ministry, include three new contracts planned for 2026-2028 and 13 new jobs.

Aluksne municipality's inclusion into the Latgale SEZ is foreseen in The Action Plan for Security and Growth on the Eastern Border 2025-2027.