Belarusian authorities continue attempts to control shadow economy

Last week, the government brought out two new tax initiatives aiming to raise additional budget income. In particular, Chairman of the Council of the Republic Mikhail Myasnikovich suggested taxing online purchases by Belarusian citizens in foreign online shops. In addition, the Tax Ministry has prepared a draft decree aiming to prevent tax evasion, which envisages that citizens who report illegal payment by the employer to be exempt from liability. Both initiatives, along with the new regulation on social parasites and other tax novelties, imply that the authorities are increasingly concerned about losing control over the economy and expansion of the shadow economy. Meanwhile, additional restrictions only prompt businesses to hide their activities.