Belarus freezes prices
Ministries, concerns, and local authorities have been ordered to freeze selling and retail prices for consumer goods between December 9th, 2014 and January 15th, 2015. The devaluation of the Russian rouble and the Ukrainian hryvnia has created unfavourable conditions for domestic producers. By the year-end, inflation may not exceed 16% in Belarus. It is reasonable to expect a decrease in the prices on Russian goods, which will encourage domestic producers to provide better discounts to maintain the share on the domestic market.
The Labour and the Tax Ministries are considering the possibility to include persons engaged in some economic activity without forming a legal entity in the social security system. When the decree No 337 comes into effect, the number of private entrepreneurs is likely to reduce due to the possibility of reducing the tax burden when switching to a tax payment as an individual. 95% of self-employed, including PE, pay insurance premiums on the basis of the minimum wage. The number of self-employed citizens is expected to increase, the number of insurance contributions to the pension system from PE will decrease, the number of citizens who will pay a fee to finance government spending will decrease by several tens. Self-employed citizens have the alternative not to pay social security fees and save resources for future pensions, which, given the gradual restriction by the state of pension requirements could be a more long-sighted option.