Progressive taxation in Belarus is in line with EU practice

In many countries of the world, including Western, a progressive taxation system has become widespread, to which Belarus will switch from 2024.

Let us remind you that from next year, in accordance with the changes in the Tax Code, which have already been read for the first time by the House of Representatives, the annual income of individuals over 200 thousand rubles will be subject to increased income tax (25) current 13 % instead of %).

The collection of materials of the XXIV International Scientific Conference “Problems of forecasting and state regulation of socio-economic development” published an article by Natalya Galaburdo, an employee of the Scientific Research Institute of the Ministry of Economy, which shows that a progressive taxation system of the European Union. Including countries featuring many countries in the world.

Thus, experts note, in Latvia, Lithuania, Estonia, the Czech Republic and Romania, single-stage progressive taxation is applied, providing a single tax rate with the introduction of a minimum income threshold, on income below which is not taxed (0%), and more than that is taxed, regardless of further growth.

Whereas, in countries like Australia, Austria, Belgium, Great Britain, Germany, Greece, Israel, Spain, Italy, Canada, China, Luxembourg, Netherlands, New Zealand, Poland, Slovakia, Cyprus, Finland, France. The United States, Switzerland, South Africa use multi-stage progressive taxation, which involves dividing a person’s income into parts (steps) of taxation, each of which has its own tax rate. In this case, the tax rate depends on the amount of income.

The peculiarity of multi-stage progressive taxation is that when dividing into stages, the increased tax rate is applied not to the entire income, but only to the part that has exceeded the lower limit of a certain stage, n. Galaburdo notes.

Also, the expert says, in most countries with multi-level progressive taxation, the law provides for an annual minimum income that is not subject to taxation. Also, such a system often takes into account the family situation of the taxpayer.