Reducing VAT refund delay to 60 days may reduce prices on imported products

According to the decree No 396 of October 28^th, 2016, as of January 1^st, 2017, the delay in VAT refund will be reduce from 90 to 60 days. The delay in VAT refund was introduced in order to make imported goods more expensive. When importing goods outside the EEU, importing companies are crediting the state with import VAT, hence, they are prompted to take bank loans. Thanks to the new regulation, imported goods are likely to become less costly – by the cost of a one-one and a half months loan. Importers may take fewer loans and the state will start seeking for extra budgetary funds in order to bridge the gap from reduced VAT receipts in Q1 2017. If Belarus continues to advance with the WTO accession, and if budget revenues improve, this discriminatory measure against imported goods could be abandoned.