RIGA, April 16 - RAPSI. The Latvian government has approved the Healthcare Ministry's proposal to introduce a healthcare tax as part of the income tax, the government press office reported on Tuesday.

The new tax will be introduced as a pilot project in 2014.

Healthcare Minister Ingrida Circene has also said free healthcare should only be provided to people who pay their taxes accurately. Exceptions can be made for students, new mothers, individuals registered as unemployed, and people younger than 18 and older than 62. Others should be denied free medical services except emergency medicine.

The ministry said the new tax will not raise the overall tax burden. The healthcare tax will be deducted from the income tax, which is 24% in Latvia. People who do not pay taxes but want to use free medical services can pay 240 lats ($450) per year.

The government will still guarantee free healthcare to 20 categories of citizens who do not pay taxes. These include children and minors under 19, pensioners, individuals taking care of children with disabilities, people with disabilities, full-time students, and unemployed people registered with state employment agencies. Everyone will be entitled to emergency medical assistance regardless of their tax-paying status.

Latvia is going through a severe recession. Many local businesses have gone bankrupt or joined the "shadow economy." Some local firms pay their employees in cash which makes it easier to evade taxes.