Belarusian authorities expand list of activities not requiring registration to improve employment and step up tax inflow
The list of activities not requiring registration as private entrepreneurship will be extended to 30 from 18. To carry out such activity, an individual should simply notify the tax authorities of the commencement of operations and pay taxes before commencing. It is expected that there would be an increase in the number of people who would work without registration. In addition, fewer people would be fined for violating existing legislation, fewer would register as unemployed, competition on the service market would increase and prices would go down. Given the simplicity of declaration and low tax rates, the state should obtain additional tax revenues. In addition, this measure would address the issue of social dependants and reduce competition on the labour market.
According to Belstat, in August 7,600 people were dismissed, including 4,800 civil servants. Dismissals of civil servants were due to the optimisation in the public administration by up to 30%. Some civil servants would retain their job however would lose the status of a civil servant. Vacancies on the labour market are likely to reduce in number, thanks to the optimisation, the state administration would increase wages for public servants. The payroll fund for retained employees is likely to increase and some former state employees are likely to get jobs in affiliated organizations. The optimisation of the state apparatus should complete by January 1st, 2018, and some former civil servants are likely to join the ranks of the unemployed.