Belarus to reduce taxes to 26.6% of GDP in 2014
2013-12-27 15:00:41
Tax burden in Belarus is expected to be reduced to 26.6% of GDP next year, First Deputy Finance Minister of Belarus Vladimir Amarin told an online conference hosted by BelTA on 26 December.
“Even despite fiscal orientation of certain measures of the taxation policy and preservation of the current rates of main taxes, the level of tax burden in 2014 will be reduced by 0.6 percentage points and is projected at 26.6% of GDP, which meets the similar indicators in Russia and Kazakhstan – 27.4% and 25.1% respectively over the nine months of 2013 (January-September),” Vladimir Amarin said.
According to the official, the revenue side of the budget for 2014 takes into account the amendments to the Tax Code. First of all, they pertain to the stimulation of investment activity. In particular, the amendments envisage some preferences in respect to the applied “bonus depreciation” which is to be transformed into an “investment premium”. It is size will be increased.
“Fiscal orientation of the amendments in the taxation legislation is driven by the need to enhance sustainability of budget revenues and secure financing sources of growing expenditure commitments in some areas and sectors,” Vladimir Amarin noted. First of all, rates of excise duties have been adjusted taking into account slightly higher inflation parameters for the next year in order to harmonize the excise policy in the Single Economic Space and level off the prices for excisable goods. Rates of excise duties will be increased on alcohol and tobacco products, automobile fuel from 14.5% on fuel up to 56% on certain types of tobacco goods. Rates of other taxes (land, ecological and others) set in the national currency will be kept up to date for the projected average annual inflation rate, or 12.7%.
“Another novelty is a state tax for letting vehicles using public roads. The tax of the kind will be introduced to get additional funds for maintaining and constructing roads in 2014,” Vladimir Amarin noted.
Among other steps are measures to improve tax administration and control. Among other things, the mechanism of levying the eco-tax has been considerably simplified, the area of electronic cooperation has been expanded between taxation bodies and tax payers.