Tax reforms in Belarus to stimulate business climate expected by October 2017

Tax reforms in Belarus to stimulate business climate expected by October 2017

The business in the countryside will be provided with tax preferences and the list of activities that can be led on the declarative principle will be expanded. Moreover, tax advisers will appear in Belarus.

Several documents aimed at developing entrepreneurship were submitted to the head of state for consideration by the Government. The liberalization of business was recently discussed at a meeting with the President, and today Alexander Lukashenko was informed about the preparation of three legal acts. According to one of them, tax benefits will be received by businessmen in the countryside, in household services and public catering.

Alexander Lukashenko, President of Belarus:
Trade, public catering, household services are very important and, first of all, in small towns and villages. Everyone understands this. The measures that we will take must be addressed to this sector of services. We agreed that it is necessary to remove all sorts of thoughtless, unnecessary and retarding measures. How many refrigerators should a cafe have, where to wash dishes, where to go, where not to go, what to carry and how to carry. It is necessary make all this simpler but so that it remains absolutely clear and safe for people. That's the whole concept.

Another decree will expand the list of economic activities which require only a single tax to start. In this case a person in Belarus does not have to register as an individual entrepreneur and provide tax reports. The examples of these activities are making culinary products, repairing furniture, interior design, repairing watches, shoes, sewing clothes, setting up musical instruments, sawing firewood or building fireplaces. That is, these are types of activities that persons actually carry out at home: hairdressers and cosmetologists. At present, 18 types of activities could be carried out on the basis of the declarative principle, but now this figure will be increased to 30. The Ministry of Taxes has prepared today one more document, concerning institute of tax advisors.

Alexander Lukashenko:
I would like you to pay special attention to the examination of the corruption component of this law. Do you know what's bothering me? We have tax inspections that somehow prompt something, advise, if someone does not understand something. We can't legalize the paid activity of your subordinates. They will still take money for this, and then they will forget that they are state people, that it is necessary to work for the state. And they will go for money to advise, and this smells corruption. I am generally concerned about this draft decree: will we get a positive effect. Now I see we can only get a negative effect.

A total of 10 bills have been prepared, which will liberate the business initiative in Belarus. They are called upon to solve a number of tasks, except, achieving decent living conditions in small settlements. All the finalized documents must be submitted to the head of state by October 1.