Belarus Government Suggests New Tax Scheme for Belaruskali
OREANDA-NEWS. The Government of Belarus has developed a new provision on tax regulations for the state-owned Belarusian company OAO Belaruskali, a source in the Belarusian government told.
The new provision was prompted by the necessity to optimize the taxation mechanism for Belarus' potash export company, the official explained. As a result of the new tax regulations, Belaruskali is likely to end up making an even greater contribution to the state budget that it currently does.
The new tax scheme suggests preserving the export duty on potash fertilizers and the mining tax. The new scheme awaits the approval of the head of state.
In September 2013 President Lukashenko signed an ordinance whereby potash fertilizers were subject to zero export duties from September 1, 2013 till December 31, 2013 for the sake of ensuring stable operation of OAO Belaruskali. In early January 2014 Belarus extended the effect of the zero customs duty on potash exports till March 31, 2014.
In 2013 OAO Belaruskali exported 3.437 million tonnes of potash fertilizer (in terms of 100% potassium chloride), to compare with 3.668 million tonnes exported in 2012. Potash export proceeds in 2013 totalled USD 2.063 billion to compare with USD 2.651 billion in 2012.
The state-owned Belarusian company OAO Belaruskali is one of the world's largest manufacturers of potash fertilizers, employing about 18,440 personnel. It operates the Starobinskoye potash salts deposit and comprises four mine groups, auxiliary shops and support units.
Belaruskali controls more than 16% of the world's potash fertilizer market. Belaruskali facilitates potash exports through OAO Belarusian Potash Company.