Equal subsidies to Belarusian and Russian machinery on Russian market since 2015
The Eurasian Economic Commission’s Board representative from Belarus, Sergei Rumas, said that as of January 1st 2015, Belarus-made machinery sold on the Russian market will receive subsidies from the Russian budget.
If so, Belarus can count on additional sales for Belarusian producers, primarily in agricultural engineering (e.g. MTZ, GOMSELMASH), and the Belarusian government will require less funds to support the industry. Belarusian machinery makers will be able to increase capacity utilization and reduce warehouse stocks. The main risk is the bureaucracy of the Russian government in deciding about the subsidies’ allocation and their size, as well as the availability of sufficient funds.
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.