Belarus to offer most favorable terms for businessmen and investors

The Government of Belarus is determined to offer entrepreneurs and investors the most favorable terms of doing business, Deputy Prime Minister of Belarus Sergei Rumas said at a session of the Council of Ministers to discuss the draft program of the government’s action plan for 2011-2015 on 1 February.

The major goal facing the government is to fulfill the social and economic development program of the Republic of Belarus set to run in 2011-2015. The major points of the program were approved at the Fourth All-Belarus People’s Congress. Sergei Rumas voiced the major tasks set by the government in the current five-year period. They include sustained economic growth, greater labor efficiency, an increase in capital investments and household incomes and reaching a surplus in foreign trade.

The participants of the session discussed ways to improve the legislation in order to create most favorable conditions for entrepreneurship and investments. In 2011 alone, about 75 bills are to be elaborated. A major focus will be placed on the transition from administrative economy to market economy based on indirect regulation. The Vice-Premier underlined the need to delimit the functions of state and economic administration, restrict the state interference with activity of economic entities. The structure and size of the state property will be optimized, including by means of selling shares of loss-making state-run enterprises.

The tax burden on entrepreneurs will be further eased (to 26% of GDP) and the tax administration will be simplified. Sergei Rumas deems it necessary to consider the redistribution of mandatory insurance contributions to the Social Security Fund between employers and employees. This will enable the introduction of a defined contribution pension system.

The reduction of taxes and the time spent on tax calculation and payment more than three times will help advance the Belarusian tax system in the World Bank’s Doing Business ranking from the 183rd to 70th position.

According to