Authorities ready to give promises to business once again
The Belarusian Economy Ministry has initiated public discussions of a draft directive “”. Previously, at a meeting on tax policy issues, President Lukashenko warned against frequent changes in taxation rules. Amid the lack of resources to buy the loyalty of the population with income growth, increased focus on market issues and new economic liberalization and de-bureaucratisation programmes imply that the authorities are preparing for the election campaign. In addition, the government creates a favourable background for negotiations with international financial institutions, like the IMF, regarding a new loan.
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.