VAT will be increased to 22%

The value added tax rate may grow in 2014 from today’s 20% to 22%.

And the profit tax rate may drop from 18% to 12%. According to BelaPAN, this is provided for in the draft law on amendments into the Tax Code.

The developers of the draft law note, that the suggestion of the increased VAT rate next year is prepared in the framework of attracting additional budget incomes.

According to the assessments of the economic authorities, the reconsideration of tax rates leads to several consequences. In particular, the authorities expect that as the result of decreasing the profit tax rate tax burden will decrease on exporters (who apply 0% VAT rate on exported goods).

Together with that, according to the draft law developers, the VAT rate increase will put additional tax burden on imports, including imports for consumption.

It should be noted that the preparation of the draft law on amendments into the Tax Code took place without the participation of representatives of Belarusian business-associations.