Cost of gas and electricity for population could grow 20% in 2016

Газ і электрычнасць для насельніцтва ў 2016 годзе могуць падаражэць на 20%

Tariffs for gas and electricity for the population may significantly increase in 2016. Belarus plans to abolish a tax break for these rates. According to BelaPAN, this measure is provided by the draft budget for next year.

Legislators offer to set tariffs for gas and electricity for the population in 2016 taking into account the value added tax (VAT). Today, the VAT is 20%.

According to experts, the proposal to include VAT in the tariffs for the population is one of the measures aimed at the elimination of cross-subsidization.

Currently, gas and energy providing organizations include the VAT in the costs associated with the provision of gas and electricity for the public. It is expected that innovation will increase the share of the population in the reimbursement for the provision of such services.

Incidentally, the tariff reform is one of the conditions of the international financial institutions with which Belarus is in talks on new loans.