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Government to abolish a number of taxes in 2011, official says

The Belarusian government plans to abolish a number of taxes and introduce other liberalization measures in the sphere in 2011, Dzmitry Kiyko, a departmental chief at the finance ministry, told reporters in Minsk on September 9, as quoted by BelaPAN.

In particular, the local taxes on services and area development will be scrapped, while the rate of the environmental tax will be reduced.

People doing clothing repair and remodeling and providing photography services will no longer be required to obtain registration as sole entrepreneurs.

Under the new rules, sole entrepreneurs will be required to pay an additional tax if their proceeds exceed 30 times the rate of the so-called single tax (a fixed amount), not 20 times as is the case now. The rate of the extra tax will be cut from 10 to eight percent of the proceeds.

"As a result, the tax burden on the economy will be reduced by 0.4 percent of GDP, or 700 billion rubels, next year," Mr. Kiyko said.

"In general the process will lead to an increase in the tax basis as far as it concerns major taxes. The budget incurs losses directly, but the economy gets indirect benefits as the saved money stays and works," he said.