20% tax on purchasing foreign currency: Belarusian business at a loss

Belarusian companies and enterprises are looking forward for Belarusian rubel’s official devaluation and setting its uniform rate. At the moment a lot of employers have to put their staff on enforced leave.

“The real economy is all adrift. After we have carried out a questionnaire study at enterprises we can state that abandoning work, putting employees on leave and waiting for further development is the easiest way out for businesses,” Aliaksandr Kalinin, Chair to the Belarusian Union of Entrepreneurs, told news agency BelaPAN.

On December, 19 a temporary 30% levy on purchasing foreign currency was enforced in Belarus. On December, 29 the rate of the tax on foreign currency purchases via the exchange is reduced from 30% to 20%.

Mr Kalinin stressed that this 20% levy is to be paid off as part of the net profit, which drives up companies’ expenditures and makes it impossible to forecast their further activity. Only after the Belarusian rubel is oficially devalued and the exchange rate is unified one will be able to predict companies’ shift to normal operating schedules, he added.


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