Belarus to Tax the Rich as Lukashenko Slams Economic ‘Screw-ups’

Belarusian President Alexander Lukashenko has publicly reprimanded Prime Minister Alexander Turchin for what he termed the government’s “screw-ups,” citing faltering economic performance and a notable 2.5% dip in exports. The sharp critique was delivered during a televised meeting where Lukashenko expressed his bewilderment at the government’s struggles, particularly in industry, a portfolio he had personally assigned to the Prime Minister.

While Turchin attempted to soften the criticism by highlighting a 101.2% growth rate when services were included with goods exports, the President remained unimpressed. “Goods are about people. They are about workforces and salaries,” Lukashenko retorted, demanding that the sector be brought back on track. The President also demanded an update on pork production and expressed dissatisfaction with the Vice Premier for agriculture, placing him under “strict control.”

In a significant political maneuver, Lukashenko announced that former Prime Minister Roman Golovchenko, who now heads the National Bank, will lead a special group to monitor the economy and report directly to him. This creates a parallel oversight structure alongside the State Control Committee. “I asked Golovchenko to form such a group… to objectively analyze and report to me,” Lukashenko explained to Turchin, instructing him not to take offense at the new arrangement.

This high-level pressure coincides with the drafting of Belarus’s budget for the upcoming year, which is projected to run a deficit. Vladislav Tatarinovich, Deputy Chairman of the Council of the Republic, confirmed the shortfall but assured the public that the deficit would be manageable and that sources have been identified to cover it. The President’s primary directive is that ordinary citizens should not suffer from the economic difficulties.

To address the fiscal gap and promote what officials are calling “social justice,” the government is planning a significant tax overhaul targeting the wealthy. Tatarinovich revealed plans to introduce an additional, higher income tax rate for citizens with incomes considered “high by our standards.” This progressive tax measure is aimed at increasing contributions from the country’s top earners.

The new tax policies will also extend to property. Owners of apartments and houses with square meterage exceeding what is considered an average size will face increased property taxes. Furthermore, the government intends to equalize transport taxes for individual entrepreneurs and legal entities to create a level playing field. These measures are being framed as a necessary step to ensure fairness while the state navigates its economic challenges.