Latvian government rejects mandatory certification for car repair shops

Latvia’s government does not support mandatory certification or a new qualification system for car repair shops, saying stronger oversight and more capacity for supervisory bodies are the better ways to curb the sector’s shadow economy, LSM reported.

The government on Tuesday backed a draft response prepared by the Ministry of Economics for the Saeima’s subcommittee on combating the shadow economy. The response says effective enforcement of existing rules is key, including requirements on tax payments, accounting and consumer protection.

Voluntary certification for car repair shops has been available in Latvia since 2006 through the Latvian Association of Automotive Engineers. The ministry said certification is generally expensive and therefore aimed mainly at medium-sized and larger repair shops. Vehicle and equipment manufacturers also offer other types of quality certification.

Car repair businesses must register in several registers, including the commercial register and the tax register. Depending on the services they offer, they may also need to register activities that cause Category C pollution. Information in these registers is publicly available.

The Consumer Rights Protection Centre oversees services provided to individuals under consumer protection and fair commercial practice laws. The State Revenue Service oversees businesses under tax and accounting laws.

In June, the Saeima’s subcommittee on combating the shadow economy called on the Cabinet to prepare proposals for amendments to legislation to protect consumers using car repair services.