Excessive tax burden amid economic turmoil results in wages paid under the table – business unions
<p> MINSK, Mar 5 - PrimePress. More than a half of salaries paid under the table in Belarus has been the result of an excessive tax burden in very difficult economic conditions, including pandemic, political crisis, as well as short-sighted and aggressive statements about private business. This is stated in a letter fr om the Republican Union of Entrepreneurs and Employers (RUEE) to the Ministry of Taxes and Levies of Belarus, which is published on the RUEE website. </p> <p> </p> <p> As previously reported, the Tax Ministry invited business unions to join forces in the fight against the practice of paying wages under the table and to work on compliance with tax laws and on the prevention of tax evasion. </p> <p> </p> <p> According to the Ministry of Finance, in recent years, the tax burden is about 25%, social security contributions are a little over 10%, and non-tax deductions are about 5% of GDP. In addition, commercial organisations have to bear the costs of administering mandatory payments, which are estimated at between 5 and 10% of value added. </p> <p> </p> <p> "For an effective fight against wages paid under the table, it is important to develop a sense of social justice in the amount and forms of taxation and tax administration, which, from our point of view, is not fully formed in Belarus. Half-legal methods of distribution of benefits among public enterprises and employees do not correlate with such a feeling in any way,” reads the letter. </p> <p> </p> <p> The business union also draws attention to the problem of unfair competition, noting that special conditions and exceptions from the statutory rules are created everywhere for government agencies and state-owned enterprises. </p> <p> </p> <p> In addition, the RUEE notes that in Belarus there is no proper responsibility of the law enforcement and supervisory authorities in those cases wh ere even in court their actions were not upheld, moreover - were found unreasonable. </p> <p> </p> <p> The business community of Belarus has long insisted on an analysis of the implementation of Presidential Directive #4 "On the development of entrepreneurial initiative and the promotion of business activity in the Republic of Belarus", in particular point 9.1, according to which in case of vagueness or ambiguity of the prescriptions of the legislation, the courts, other government agencies and other public organizations and officials must take decisions in favour of business entities and citizens. </p> <p> </p> <p> “Unfortunately, in practice, our long-term interaction with the state authorities contains a number of absolutely negative examples”, says the letter. </p> <p> </p> <p> The business union believes that the tax authorities are in fact attempting to revive the provisions of Presidential Ordinance #488 through retrospective application of Article 33.4 of the Tax Code and calls this another "brick" in the construction of the "wall" between state regulation and businesses’ sense of security and justice. </p> <p> </p> <p> RSPP stresses that in the current economic situation, external and internal challenges require the mobilisation of society. At the same time, business inspections entailing the seizure of substantial amounts in the form of taxes, which are additionally assessed for previous periods under the new rules, lead to the liquidation of many taxpayers. “By killing taxpayers, the state loses budget revenues, loses jobs and wages as a source of income tax revenue for the public budget, and also reduces the general purchasing power of the population: by losing a job, a person is forced to save to survive,” the letter said. </p> <p> </p> <p> As previously reported, since the beginning of the year, Belarusian president Alexander Lukashenko has ordered several times to toughen responsibility for the practice of paying wages under the table. In particular, he demanded to increase property liability for legal entities for non-payment of taxes, as well as to extend liability to the recipients of such money. End </p>
2021-03-06
Primepress
Excessive tax burden amid economic turmoil results in wages paid under the table – business unions
MINSK, Mar 5 - PrimePress. More than a half of salaries paid under the table in Belarus has been the result of an excessive tax burden in very difficult economic conditions, including pandemic, political crisis, as well as short-sighted and aggressive statements about private business. This is stated in a letter fr om the Republican Union of Entrepreneurs and Employers (RUEE) to the Ministry of Taxes and Levies of Belarus, which is published on the RUEE website.
As previously reported, the Tax Ministry invited business unions to join forces in the fight against the practice of paying wages under the table and to work on compliance with tax laws and on the prevention of tax evasion.
According to the Ministry of Finance, in recent years, the tax burden is about 25%, social security contributions are a little over 10%, and non-tax deductions are about 5% of GDP. In addition, commercial organisations have to bear the costs of administering mandatory payments, which are estimated at between 5 and 10% of value added.
"For an effective fight against wages paid under the table, it is important to develop a sense of social justice in the amount and forms of taxation and tax administration, which, from our point of view, is not fully formed in Belarus. Half-legal methods of distribution of benefits among public enterprises and employees do not correlate with such a feeling in any way,” reads the letter.
The business union also draws attention to the problem of unfair competition, noting that special conditions and exceptions from the statutory rules are created everywhere for government agencies and state-owned enterprises.
In addition, the RUEE notes that in Belarus there is no proper responsibility of the law enforcement and supervisory authorities in those cases wh ere even in court their actions were not upheld, moreover - were found unreasonable.
The business community of Belarus has long insisted on an analysis of the implementation of Presidential Directive #4 "On the development of entrepreneurial initiative and the promotion of business activity in the Republic of Belarus", in particular point 9.1, according to which in case of vagueness or ambiguity of the prescriptions of the legislation, the courts, other government agencies and other public organizations and officials must take decisions in favour of business entities and citizens.
“Unfortunately, in practice, our long-term interaction with the state authorities contains a number of absolutely negative examples”, says the letter.
The business union believes that the tax authorities are in fact attempting to revive the provisions of Presidential Ordinance #488 through retrospective application of Article 33.4 of the Tax Code and calls this another "brick" in the construction of the "wall" between state regulation and businesses’ sense of security and justice.
RSPP stresses that in the current economic situation, external and internal challenges require the mobilisation of society. At the same time, business inspections entailing the seizure of substantial amounts in the form of taxes, which are additionally assessed for previous periods under the new rules, lead to the liquidation of many taxpayers. “By killing taxpayers, the state loses budget revenues, loses jobs and wages as a source of income tax revenue for the public budget, and also reduces the general purchasing power of the population: by losing a job, a person is forced to save to survive,” the letter said.
As previously reported, since the beginning of the year, Belarusian president Alexander Lukashenko has ordered several times to toughen responsibility for the practice of paying wages under the table. In particular, he demanded to increase property liability for legal entities for non-payment of taxes, as well as to extend liability to the recipients of such money. End