Offshore just for friends?

Recently the information has appeared that due to the tax and custom benefits the government is going to create a common offshore zone for foreign investors on the whole territory of Belarus.

According to the president’s decree, all the working for export companies with more than 51% of foreign capital in their authorized funds will be dismissed of most tax and customs duties for 5 years from the date of registration. In such a way the government tries to attract the foreign investments of 2.3 billion dollars in Belarus, among them 1.2 billion dollars being direct investments. Aliaksandr Chubrik, the economist of Management and Enterprise Institute researching center commented this information to Charter’97 press center.

“It’s difficult to say, to what extent it will improve the situation with the investments. The main problem for the investors is not high taxes, but the whole economic and political situation. If the economy is not transparent enough, the new decree will bring no fundamental changes”, - the economist supposes.

The expert draws the attention to the fact that the business in Belarus is not open and transparent. “It is demonstrated by the mobile phone operator Velcom owners change. In spite of the promised tax benefits, nobody except the persons in attendance knows the amounts of different bribes and lugs. The real foreign investors won’t be allowed to the profitable spheres of Belarusian economy. I think the adoption of this decree won’t make serious progress. The offshore zone will suffer a defeat. There we must invest money, develop industry, not just register firms”, - the economist thinks.

The expert supposed that the favorable ground for Belarusian shade millionaires is being prepared. Under the pretence of foreign investors they can invest in the economy the money they earlier got out of the country. “Now there exists a situation when the money taken out from our country is actively being invested in Belarus. It is quiet possible the working out the decree was initiated the certain circle of rich Belarusians who want to invest the money and not to pay taxes. With the help of the decree they are preparing the benefits for themselves”, - Aliaksandr Chubrik thinks.