Tax Authorities Conduct Raids on Stores Selling Imported Light Industry Goods

During the first weekend of October, tax authorities carried out enforcement operations in 22 stores across all regions of Belarus and in Minsk that specialize in selling imported light industry products.

The inspections covered 10 companies and two individual entrepreneurs. According to the Ministry of Taxes and Duties (MNS), all those inspected were characterized by a low tax burden, reduced weekend sales volumes despite increased foot traffic, and a low share of cash revenue.

The ministry reported numerous legal violations in all inspected retail outlets. The main offenses included:

• accepting cash payments “off the books,” which the ministry believes were used to pay undeclared wages;
• absence of identification tags on imported goods and lack of documentation confirming their legal acquisition;
• the total value of goods involved in illegal circulation exceeded 1 million rubles;
• failure to calculate and pay taxes on unaccounted income.

Organizations and their employees were held administratively liable and fined a total of 122,500 rubles. The MNS noted that the violations identified could entail not only administrative but also criminal liability.

Earlier in October, Tatyana Lugina, who at the time headed the state concern Bellegprom, complained about declining consumer demand. Later, Aleksandr Lukashenko replaced the concern’s leadership, appointing Nadezhda Lazarevich—previously the first deputy chair of the Minsk City Executive Committee—as its new chair.

Lugina now serves as general director of OAO Kamvol and plans to rescue the enterprise by increasing revenue by 2 million rubles within a year and restructuring sales—currently 97% of which consist of fabric—by introducing ready-made clothing.