New taxes as source of budgetary proceeds in 2016

A draft decree introducing the 10% turnover tax for communication services as of March 1^st, 2016, has been prepared. The fall in oil prices and depreciation of the Belarusian rouble have led to budgetary adjustments for 2016 in order to increase budget revenues. Service providers will pass on consumers most of the 10% tax. The population is unlikely to stop using telecommunication services due to a rise in tariffs. Overall, in 2016, the tax burden on successful businesses is likely to increase, while social expenditure is likely to decrease, as well as housing and communal services subsidies. Revision of the expenditure budget is unlikely to lead to a significant reduction in financial support for loss-making sectors of the economy due to their social function – preserving the employment rate in in small cities and towns.