MINSK, 9 August (BelTA) – Taxation adjustments in the Russian oil industry will cost Belarus' state budget Br600 million in lost revenues in 2019, BelTA learned from Belarusian Deputy Finance Minister Dmitry Kiyko on 9 August.
“Today we have to bear in mind that next year's revenues will drop by some Br600 million due to the so-called tax maneuver,” said the official. The losses will be caused by reduced customs duties on the export of oil products and a 25% decrease in excise duties on fuel. These circumstances limit the ability to reduce the tax burden in Belarus, stated Dmitry Kiyko.
These risks will have to be minimized in the medium term. It can be done as complex matters relating to the possible taxation reform are being addressed.
The official also said that Belarus is starting consultations with Russia to discuss the consequences Belarus will face due to the taxation adjustments. Belarus believes that the current situation may make a common Eurasian Economic Union market of oil products impossible. “While adjusting the taxation, the Russian Federation introduces new mechanisms to subsidize domestic oil processing companies – the so-called negative excise duty. We have no resources to do the same,” noted Dmitry Kiyko.
The situation may result in a misbalanced fuel market, with fuel costing much more in Belarus than in Russia. “With an open border unfair competition will be a fact. In essence, Russian oil products will oust Belarusian ones from our market. This is why there is another option: arranging consultations to find possible compensatory mechanisms within the framework of interstate relations in order to establish and preserve equal competition conditions,” concluded the Belarusian deputy finance minister.
