Finance Ministry expects significant revenues from tax increases

The cancellation of tax incentives, as well as an increase in some taxes can replenish the budget of Belarus up to 1 billion BYN, said the Finance Minister Yury Seliverstau on the air of ONT.

The Finance Minister said that the pandemic is putting strong pressure on the country’s economy. Hence the planned budget deficit of about 4 billion BYN for 2021. According to the official, this figure is not critical and the authorities will cope with the financial burden.

To do this, on January 1, Belarus canceled some tax benefits, and as additional measures to reimburse the costs of combating coronavirus, the income tax rates for mobile operators have been increased from 18% to 30%.

“Throughout the country, these benefits, including VAT, will probably give up to 1 billion BYN,” Mr Seliverstau said.

On January 1, the income tax rates were increased for employees of residents of the Park of High Technologies, as well as residents of the Chinese-Belarusian industrial park “Great Stone” reports.

Taxes were raised from 9% to 13%. These changes are provided for by the updated Tax Code. The increased tax rates, as promised by officials, will be introduced for two years – until January 1, 2023. The Ministry of Taxes and Duties explained these measures by the need to consolidate budget revenues to combat COVID-19.

Earlier, representatives of the IT market, commenting on a possible increase in taxes, said that “such changes would violate the principle that has been in force in relation to HTP over the past 15 years, namely, the immutability of legislation.”