20% VAT budget bill in parliament

MINSK, 7 December (BelTA) – The Finance Ministry has brought the next year’s budget bill into the Belarus parliament. The draft budget increases the VAT from 18% to 20%, BelTA has learned. Finance Minister Andrei Kharkovets told a session of the relevant commission of the House of Representatives of the National Assembly on 7 December, the increased VAT is expected to earn extra Br1.7 trillion for the national budget. Simultaneously four other taxes will be abolished, namely donations to the fund for supporting agricultural producers, the retail trade tax, the automobile purchase tax, local fees collected for automobile parking. As a result, the tax burden will be reduced from 34.3% as against the GDP in 2005 to 28.2% as against the GDP in 2010. Revenues of the consolidated budget are expected to reach Br53 trillion, expenses – Br55.7 trillion, with the deficit at Br2.7 trillion.

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