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On 1 May 2004, changes in VAT rates in Latvia came into force, harmonizing them with regulations of the European Union. The price of cinema tickets will be affected. An 18% VAT on film distribution and a 5% VAT on cinema tickets have been introduced. Exceptionally, for screenings of films of an erotic or pornographic character the standard rate ­ 18% of VAT ­ is applicable on the sale of tickets. Small distributors, dealing mainly with European films, have criticised the move, as it is expected that the VAT on cinema tickets will actually have the effect of increasing the price of tickets.

On 15 April 2004 the Cabinet of Ministers passed a new Law on Electronic Communications in Latvia. This law will replace the existing Law on Telecommunications. The former Law on Telecommunications was adopted on 1 November 2001, and it regulated the telecommunication services in a competitive environment. Under the new Law Latvia harmonizes its legislation with communications legislation on a European level adopted in 2002. The Law regulates the competences of the public electronic communications institutions, private electronic communications network owners and the users of electronic communications...

During summer 2003, some important developments took place that might delay the introduction of digital television in Latvia. Latvia began to plan the introduction of digital TV as early as the year 2000. At that time Radio and Television Centre of Latvia sold 23% of the shares of Latvia Mobile Telephone to its daughter company ­ Digital Radio and Television Centre of Latvia (DRTCL) ­ to secure the financial means necessary for the introduction of digital TV. The DRTCL was established with the aim of implementing a digital television broadcasting network in Latvia and, by the end of 2006, to provide...

On 6 June 2003, the Constitutional Court in Latvia published a decision abolishing the rule providing that no more than 25% of programming broadcast on electronic mass media may be in foreign languages. This decision, which cannot be appealed, has led to an amendment of the Law on Radio and Television. The Court affirmed that "the restrictions as regards the use of foreign languages envisaged by the said rule may not be considered as necessary and proportionate in a democratic society". The Court also stated that it would have been possible to achieve the aim of integration of society by other...

On 15 May the Saeima (Parliament) of the Republic of Latvia again opened the discussion on the Law on Radio and Television. The amendments put forward shall change the regulations on the National Broadcasting Council. As the existing law envisages, the National Broadcasting Council oversees both public and private broadcasters. The Council is an autonomous legal entity and operates independently of any Ministry ­ its 9 members are elected directly by the Saeima. Among other things it also manages the state capital shares of the public broadcasters ­ Latvia Television and Latvia Radio. As to the...