Belarusian state budget to fail income tax plan for 2016

According to the Finance Ministry, in January-February 2016, the national budget received BYR 300.6 billion from income tax payments or 3.3% of the projected amount for 2016. The low proceeds from income tax were due to the economy’s losses, which exceeded BYR 20 trillion. Following the adoption of the decree on writing off foreign exchange rate differences, the number of profitable enterprises is expected to increase. Compared with 2015, budgetary proceeds from income tax are likely to reduce due to further deterioration of price terms on foreign markets. In Q1 2016, the state budget expenditures are likely to be readjusted due to the expected shortfall in tax payments, and investment programmes of enterprises using own funds are likely to be reviewed. The state is likely to attempt to compensate for reduced income tax revenues by increasing the tax burden on profitable businesses and enhancing audit.