4 September 2008
Government set to scrap 20 taxes by 2011
The Belarusian government plans to abolish 20 taxes by 2011, Uladzimir Amaryn, deputy minister of finance, said at a meeting of standing committees in the House of Representatives in Minsk on Thursday.
The official noted that the Belarusian taxation system would be similar to those in other countries in a few years’ time.
In particular, he said, the government will scrap mandatory contributions to the agriculture support fund, local profit taxes and a tax on vehicle purchases.
The number of taxes is expected to be reduced to 27, with only eight to be paid by businesses regularly, Mr. Amaryn said.
“The rest of the taxes are to be paid depending on the sphere where the company or organization operates, that is, say, they include excise taxes, a tax on lottery proceeds, state fees, etc.,” the deputy minister said.
Mr. Amaryn predicted that the tax burden on the economy would be reduced by 1.3 percent of GDP in 2009. “This is some two trillion rubels, which will be kept by taxpayers and become an additional factor of raising the competitive capacity of Belarusian goods in external markets, a source of company working assets and investments,” he said.
The government plans to cut the rate of contributions to the agriculture support fund from two to one percent of companies’ proceeds, which will help taxpayers save some 1.4 trillion rubels.
In addition, equipment used by companies for manufacturing their products is to be removed from the list of taxable property.
The rate of mandatory contributions to the Social Security Fund is to be cut from 35 to 34 percent of the payroll next year, according to Mr. Amaryn. //BelaPAN
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