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Auto Service Misfortune: Prosperous Companies Pay $ 1,600 a Year in Taxes, "Official" Salaries Under $ 270 a Month

Supervisory services have begun to test car services and early results are not encouraging. Joint actions by the State Revenue Service (SRS) and the State Environmental Service (SES) have revealed suspiciously low wages, negligible annual taxes and also illegal burning of oil waste in furnaces.

The SRS and VVD receive regular information about workshops operating in the so-called gray area. On Monday and Tuesday, public authorities raided several garages. One of the focuses – employee contracts, tax payments. In the attack, no employee was found without a contract of employment, but the employment contracts were highly suspicious.

“There is no minimum wage! The salary started from 270 euros. Result of financial activities: 1600 euros per year paid in taxes on such businesses. Little by little! Emphasizes SRS spokeswoman Ina Reinšmite.

Already in July, national authorities, together with the Latvian Tire Management Association, organized a campaign, sending reminders to services to organize their activities to meet environmental requirements. Unfortunately, many business owners blatantly ignore the requirements.

“On the first day, we surveyed the vast majority, 32 car services. Some include non-conformities related to waste management. It is a record, a storage that is not done correctly. Essentially, half – 15 sites – were non-compliant, 10 were operating without a Category C polluting activity certificate, ”explains Kalvis Avotiņš, SES representative.

In addition, to save money that would be spent on legal treatment of hazardous waste, business owners have created their own money-saving machines.

"In some cases, incineration in dedicated furnaces where liquid petroleum products are incinerated," says Avotiņš.

In total, 50 vehicle repair companies have been inspected by SRS and SES today. Further analysis of the results is promised in the coming days.

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