Belarusian population will pay for raised taxes
As of April 1st, 2016, VAT on telecommunication services were raised from 20% to 25% and VAT on passenger transport services were introduced. The government has calculated that this measure would raise additional BYR 1.4 trillion for the state budget. Meanwhile, mobile operators have announced changes in tariffs for final consumers. The state is likely to come up with other similar initiatives in order to squeeze more cash from the population. In addition, the tax burden on private business is likely to increase too along with tighter liability for tax evasion and enhanced control over business activity. Increased excise tax on fuel and introduced VAT on passenger transport are likely to significantly undermine financial health of the refinery and transport organizations, and lead to the lift of the ban on growth in fuel prices and on services.
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.