On 2 September the Cabinet of Ministers debated an informational report prepared by the Ministry of Finance (“MOF”) on how to develop future tax policies that would promote Latvia’s social sustainability and economic competitiveness. The report identifies a number of issues in the tax system, which are to be resolved by a number of tax policy changes in 2021, 2022 and 2023. This article explores how the MOF proposes to change the rates of mandatory national social insurance (“NSI”) contributions, personal income tax (“PIT”) and solidarity tax, as well as income-differentiated personal allowances from 2021.