Finance Ministry: Investors’ interest in car assembly in Belarus will increase

The interest of investors in opening car assembly plants in Belarus will increase, the chief of the main tax policy and budget revenue department of the Finance Ministry, Dmitry Kijko, told reporters.

Decree No. 130 that comes into force on 1 May exempts Belarusian producers from paying VAT on sale of cars made in the country. Some other benefits are envisaged for the automakers, which makes car assembling in Belarus more attractive, Dmitry Kijko said. 

The Decree also exempts cars imported to Belarus from Russia from VAT and excises. In addition, from 1 May VAT on resale of cars will be charged on the difference between buying and selling prices rather than full cost. The state expects significant growth in revenues once car dealers in Belarus start using a trade-in scheme.

In general, Decree No. 130 amended Decree No. 546, which regulates the taxation of cars imported from foreign countries, and Decree No. 175 on industrial assembly of cars in Belarus. According to Dmitry Kijko, the document is aimed at creating equal conditions on the auto-market.

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