Some benefits of decree on Orsha District development may extend to other cities of Belarus – Economy Ministry
MINSK, Jul 9 - PrimePress. According to Economy Minister of Belarus Alexander Chervyakov, some preferential regulations stipulated by presidential decree No.506 of December 31, 2019 on the Orsha District development may be extended to other major cities of Belarus, the government’s press office reports.<br> <br> Decree No.506 approved the Orsha District development program for the period to 2023. It establishes a special tax regime for both new and already operating business entities. In particular, local enterprises are exempted from VAT when importing technological equipment; tax rates under the simplified taxation system are reduced from 5% to 1% for sales of goods produced by the enterprises, and to 2% for services provided; pension insurance deductions are reduced. The decree also provides a number of other tax and administrative benefits.<br> <br> “The preferences granted by the decree worked the best by authorizing local administrations to dispose of unused property. Most of over 600 property assets have been put into economic circulation, which makes it possible to optimize business in the district and used vacant buildings. This is one of the measures we want to extend to cities with over 80,000 residents. The investment deduction is another measure to be applied within the following range: 50% for equipment and 30% for buildings,” said Chervyakov.<br> <br> He believes it is advisable to increase the period of validity of the provisions of decree No.506 to seven years, since five years is not enough for a large investment project. The design estimation paperwork alone sometimes takes two or three years, and only two or three years are left to set up production, while there is no time for a full-scale launch. End<br> <br>
2021-07-09
Primepress
Some benefits of decree on Orsha District development may extend to other cities of Belarus – Economy Ministry
Decree No.506 approved the Orsha District development program for the period to 2023. It establishes a special tax regime for both new and already operating business entities. In particular, local enterprises are exempted from VAT when importing technological equipment; tax rates under the simplified taxation system are reduced from 5% to 1% for sales of goods produced by the enterprises, and to 2% for services provided; pension insurance deductions are reduced. The decree also provides a number of other tax and administrative benefits.
“The preferences granted by the decree worked the best by authorizing local administrations to dispose of unused property. Most of over 600 property assets have been put into economic circulation, which makes it possible to optimize business in the district and used vacant buildings. This is one of the measures we want to extend to cities with over 80,000 residents. The investment deduction is another measure to be applied within the following range: 50% for equipment and 30% for buildings,” said Chervyakov.
He believes it is advisable to increase the period of validity of the provisions of decree No.506 to seven years, since five years is not enough for a large investment project. The design estimation paperwork alone sometimes takes two or three years, and only two or three years are left to set up production, while there is no time for a full-scale launch. End