The introduction of the single 12%-income tax rate on January 1, 2009 will not cause a downturn in budget revenues, Deputy Minister for Taxes and Duties Alexander Doroshenko told the Belarusian National TV Channel. In his words, the single income tax rate is likely to push the wages up. According to the Minister, a decision of turning to the single income tax rate at the level of 12% was taken in order to simplify the taxation system. In his words, the variants of 10% and 12% including the Russian 13% have been considered. “Taking into account that over a long period of time the average income tax in Belarus neared 12%, the decision on such an income tax rate has been taken,” he explained. Alexander Doroshenko said that the single income tax rate will not increase the tax burden on the low-income people. An increased standard tax rebate up to Br250,000 is to settle this problem. The sum of Br250,000 equal to the subsistence wage in 2009 will be free from taxation. People with the monthly income not higher than Br1.5 million and permanent employment are eligible for this tax rebate. БЕЛТА
Written by belta.by
