Today, the National Bank of Belarus announced that it will implement an immediate 30% tax on purchases of foreign currency for individuals and legal entities. The tax, which the bank describes as “temporary,” is a reaction to the dramatic fall in value of the ruble in neighboring Russia, on whose economy Belarus relies heavily.
“Given the increased demand for foreign currency in the domestic foreign exchange market decided the temporary introduction of a 30 per cent duty on purchase of foreign currency by legal entities and individuals,” an official press release states.
The sudden implementation of a tax of this magnitude will come as a shock to businesses and private consumers alike, with a series of other measures also being introduced with the aim of preserving the maximum amount of funds held as Belarusian rubles (BYR). In addition to the 30% tax, from today an obligatory conversion of 50% of foreign currency earnings must be converted to BYR, the bank adds… CONTINUE