Inflation on a short-term break in Belarus
According to the National Statistics Committee, consumer prices in July 2014 rose by only 0.9% since June 2014, the lowest monthly growth in 2014.
Due to the possible increase in demand for dairy and meat products from Russia, as well as the planned increase in transport and utility tariffs, inflation is expected to increase in the coming months. Inflation will only partially be corrected by the seasonal decline in vegetable prices. Prices on imported products may soar due to the additional costs for importers of consumer goods, i.e. when Council of Ministers regulation No 361 takes effect. In addition, the recently enacted restrictions on the share of chain retailers on the regional market will reduce price competition in the regions, thus not constraining price growth on the regional level.
The Labour and the Tax Ministries are considering the possibility to include persons engaged in some economic activity without forming a legal entity in the social security system. When the decree No 337 comes into effect, the number of private entrepreneurs is likely to reduce due to the possibility of reducing the tax burden when switching to a tax payment as an individual. 95% of self-employed, including PE, pay insurance premiums on the basis of the minimum wage. The number of self-employed citizens is expected to increase, the number of insurance contributions to the pension system from PE will decrease, the number of citizens who will pay a fee to finance government spending will decrease by several tens. Self-employed citizens have the alternative not to pay social security fees and save resources for future pensions, which, given the gradual restriction by the state of pension requirements could be a more long-sighted option.