Belarusian authorities forced to cut back social support

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April 22, 2016 18:56

As of 2015, Communal Housing organisations in Minsk will be restructured and will lose their autonomy, thus becoming structural entities of Housing Repairs and Utilities Organisation.

The Belarusian authorities have been prompted to reform the housing and communal services due to the lack of resources to maintain its socio-economic model. Disregarding the upcoming presidential campaign in 2015, they will reduce social support for the population. In addition, despite opposition from some reluctant nomenclature, the Belarusian government will take steps towards some economic reforms, inter alia, with technical assistance from the EU.

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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.

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