Authorities probe Belarusians’ readiness to pay for country’s stability
At a meeting on employment and migration issues in Belarus, President Lukashenko supported the Internal Affairs Ministry’s idea to introduce a “tax on parasitism”.
It is worth noting that the Belarusian officials have repeatedly made controversial proposals that would pick citizens’ pockets, including the “tax on the officially unemployed”. Amid the crisis in Ukraine, the Belarusian leadership is probing Belarusians’ readiness to pay a hefty price for stability in their country. However, in most cases, the authorities have not fully implemented their initiatives aiming to increase the tax burden on the population by introducing taxes that do not cause an open outrage. On the one hand, some initiatives may be blocked by President Lukashenko, in case of serious perturbations and growth of protest activity. On the other hand, in the face of shrinking government revenues, the Belarusian authorities may implement some tax innovations, ones that will be less painful for the ratings.
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.