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United Civic Party urges government not to increase tax burden

The Political Council of the United Civic Party (UCP) has appealed to the government not to increase the tax burden.

A bill of amendments to the Tax Code would raise the rate of value-added tax from 20 to 22 percent, significantly raise the rates of excise tax on fuel, alcohol and cigarettes and increase the rate of the so-called single tax for small business owners with sole entrepreneur status, the letter says.

By entitling the regional soviets and the Minsk City Soviet to raise the rate of real estate tax 10 times, up from five times at present, and introducing a 5.0 land tax multiplier for land occupied by unfinished buildings, authorities would deal a destructive blow to sole entrepreneurs and other small business owners, the letter says.

The UCP Political Council warns that the adoption of the bill would result in "economic suicide," noting that hundreds of jobs may be cut, that tens of thousands of sole entrepreneurs and small and medium-sized enterprises may go out of business, and that economic recession would begin.

Instead, the government should lower the rate of value-added tax to 15 percent and exempt companies from profit tax if they spend their profits for their own development, the letter says. //BelaPAN