MPs approve first reading of wealth tax bill
November 1, Pozirk. The House of Representatives has approved the first reading of a bill that would introduce a wealth tax in Belarus.
Drafted by the Ministry of Taxes and Levies, the bill proposes an income tax rate of 25 percent on individual annual income of over 200,000 rubels (about $63,000).
If adopted, it would also increase income tax for individual entrepreneurs to 30 percent should their annual income exceed 500,000 rubels (over $158,000), while taxes on profit for businesses should rise to 25 percent from 20 percent if their annual profits exceed 25 million rubels ($7.9 million).
The bill would abolish value-added tax for individual entrepreneurs on the sale of goods and services and allow tax deductions for recent graduates who accept obligatory job placement. It also proposes a rise in real estate taxes for commercial areas of over 200 square meters owned by individuals.
Authorities also plan a 10-fold increase in transport tax for new high-comfort cars and a single property payment for individuals covering property, land and transport taxes.
The bill would force individual entrepreneurs with income over 500,000 rubels to open a separate legal entity. Officials expect that the amendments would set “the tax burden at 23.4 percent of GDP in 2024.”
The bill has yet to be finalized and submitted to the lower house for the second and final reading. It would have to be approved by the upper house, the Council of the Republic, and signed into law by Alaksandar Łukašenka if it passes the lower chamber.
