NEWS

Belarus’ tax calculation and payment practices should meet European standards

Belarus’ practices used to calculate and pay taxes should meet European ones, said Prime Minister of Belarus Sergei Sidorsky at an out session dedicated to simplifying the national taxation system on August 7. In his words, at present the Belarusian model is not the worst one but has tight spots. Sergei Sidorsky believes, “The taxation system we should build in the country should be irreversible and should meet standards of the economy of European countries.

But it should take into account the reality of Belarus’ economic development”.

Major efforts have been taken in Belarus lately to perfect the system, which resulted in a lower tax burden, simpler tax collection and a falling number of taxes. In particular, in 2005-2007 17 tax payments were annulled, with the taxation of small and medium companies drastically facilitated.

“But the perfection of Belarus’ taxation system is far from being completed,” underscored Sergei Sidorsky.

In 2009-2010 efforts will be channelled into facilitating the taxation system and reducing the tax burden on the economy.

In 2009 the duty collected by the national fund for supporting manufacturers of agricultural products, food and agrarian science is supposed to be decreased down to 1% of proceeds from selling products. Local taxes collected for retail trade and local taxes on services will be set at 5%. Apart from that, the active part of basic production assets is supposed to be removed from the real estate tax. Besides, procedures and conditions for applying the income tax to natural persons will be perfected and facilitated.

In 2010 the government plans to annul the duty collected by the national fund for supporting manufacturers of agricultural products, food and agrarian science as well as special local taxes (3% of the income collected).

A special part of the Tax Code of Belarus will come into force on January 1, 2008, Minister for Taxes and Duties Anna Deiko said at an onsite session on tax issues.

According to Anna Deiko, the document has been already drafted but needs to be adjusted to the trends in the Belarusian economy. A reminder, in 2009-2010 Belarus plans to abolish several taxes.

For example, the duty to the national fund for supporting manufacturers of agricultural products, food and agrarian science will be reduced to 1% of sales profits. The local retail tax and local services tax will be set at 5%. Apart from that, the active part of key production assets is supposed to be removed from the real estate tax. Besides, procedures and conditions for applying the income tax to natural persons will be perfected and facilitated.

The government plans to annul ultimately the duty collected by the national fund for supporting manufacturers of agricultural products, food and agrarian science as well as special local taxes (3% of the income).

Belarus might revise wage withholding taxes. Relevant proposals were considered at an onsite session on taxation issues chaired by Prime Minister Sergei Sidorsky on August 7.

The participants of the session noted that in general a company in Belarus pays four taxes withheld on wages: VAT, profits tax, income tax, contributions to the social security fund. More so, accounting is very complicated.

Sergei Sidorsky assured that the government will consider the wage withholding taxes, as, among other things, this will help address such important issue as ‘wages in envelopes’.

Gomselmash to launch production of combine harvesters Polesie GS14 in 2009

Gomselmash Company will start to produce combine harvesters Polesie GS14 in 2009, First Deputy Premier of Belarus Vladimir Semashko said.

Polesie GS14 produces 14 kg of grain per second and it can operate on the fields with crop yield up to 100 centner per hectare.

This year Gomselmash produced a pilot lot of such machines which are being tested now in some agricultural companies of the country. According to specialists, the new Belarusian combine harvester meets the standards of the best foreign machines.

So, Belarus will produce five base models of combine harvesters with processing capacity from 7kg to 14kg of grain per second.

According to Vladimir Semashko, Belarus is still in great necessity of reliable high production combine harvester-thresher.

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