As reported, in Riga this year has increased property tax for apartments without tenants declared, unkempt land and illegally constructed objects.

Reizniece-Ozola does not believe that property tax should be an instrument of local governments in attracting new residents.

"This is the wrong approach when tax serves as a tool for other tax revenues, so we need to think about how to rectify the situation. The tax can be increased by valuable property, at the same time not affecting the owners of small property," — said the Minister.

She admits that the rate of property tax can be fixed, so that government could not manipulate it.

"Now the government can vary the property tax, and in a very wide amplitude. In the future, the possible gradation of tax rates on different property types, but the basic principle must consist in the fact that the object was worth a lot more than a small apartment. The estate tax should be a tax for the wealthy," — said Reizniece-Ozola.