Government to confiscate profits made on price hikes, finance minister says

December 5, BPN. The Belarusian government will confiscate extra profits earned on unreasonable price hikes and redirect them for social purposes, Finance Minister Juryj Selivierstaŭ told Belarus 1 in an interview broadcast on Sunday evening.

He made the remark while commenting on a two-percent corporate income tax increase and incentives for investors that should offset it.

“No one wants to pay more, but there is an incentive to invest in fixed assets and so on,” he said. “We’ve increased tax deductions on machinery and equipment this year. . . For those who want to invest profits in machinery and equipment, in fixed assets for production growth, the 40 percent will not be taxed at all. Those who don’t want to do so and who made extra profit, cashing in on price hikes that were not completely justified . . . will have the profit confiscated for social needs.”

Alaksandr Łukašenka signed the directive to freeze consumer prices on October 6, in a bid to curb galloping inflation. Prosecutors opened dozens of criminal cases over what they saw as unfounded price hikes.