Oil duties raised
Belarus increased export duties on oil and oil products exported outside the Customs Union territory. This decision of the Council of Ministers of 19 April 2011 № 557 came into force on 1 May.
Export duty on petrol went up to USD 408 per tonne, or 90% of the oil duty replacing the recent 67%, the growth on remaining fuel oil and oil products is not that significant.
Belarus was forced to raise export duty rates on petroleum products following Russia. The latter used such measures to saturate the domestic market with petrol.
In these new circumstances export of petrol by Belarusian refineries becomes unprofitable, and given the high proportion of loss-making sales of petroleum products on the domestic market jeopardizes the profitability of Belarusian oil refining as a whole.
Therefore, refineries asked the government to revoke the binding obligatory sale of 30% of foreign currency earnings. Refineries refer to the difficult financial situation and losses in the first quarter, as a result of: 1. growing world oil prices, 2. changes of conditions for importers of Russian oil (oil price this year includes high rewards for Russian oil barons,) 3. lagging growth of export prices for petroleum products from the raw materials prices, 4. growing consumption of fuel at the domestic market, 5. the need to purchase the entire volume of oil with the shortage of currency to pay for it. It is unlikely that the request of the refineries will be met.
However, the main item of the Belarusian petroleum products export is diesel fuel (40%) and residual fuel (40%) rather than petrol (20%), this casts doubt on the apocalyptic threats by some analysts, in particular the Financial News Agency, which is close to the Russian oil companies. It is obvious that Russian oil companies would be interested in re-exporting petrol from the Belarusian oil refineries to Russia, however so far Belarusian refineries do not consider this option.
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.