Plans have been made to reorganize agribusiness enterprises in Vitebsk region in 2016-2017. The relevant measures are stipulated by Belarus president decree No. 320 of August 25.
The document has been adopted to improve the performance of the enterprises, enable conditions conducive to agribusiness development in Vitebsk region and raise investments. In line with the decree the Vitebsk region administration will have to work together with the Agriculture and Food Ministry to reorganize the public joint-stock companies Vitebsk Meat Packing Plant, Glubokoye Animal Feed Factory, Orsha Cereal Products Factory, and Polotsk Cereal Products Factory by incorporating 37 enterprises in various districts into these core companies.
The decree also regulates how the companies and the enterprises will pay out their debts to the central state budget and the municipal budgets. Procedures to provide respites are stipulated as well.
The document explains when and how the reorganized companies will be able to enjoy certain tax exemptions within four years of the reorganization date.
For instance, the core companies will be able to reduce the tax base of the profit tax by the amount of money they spend on buying raw materials, agricultural machines, permanent structures for agricultural purposes if the assets are then handed over for free to the enterprises the core companies are going to take over or to the branches of the core companies that will be established instead of the enterprises.
The same benefits will be granted with regard to the money spent on building, including modernization and reconstruction, permanent structures for agricultural purposes as well as money spent on modernizing agricultural machines and equipment in the enterprises to be merged.
By September 1, the Vitebsk region administration will have to issue security papers nominated in U.S. dollars to cover the debts the core companies and the enterprises to be merged owe to Belagroprombank and Belarusbank as of July 1, 2016. The value of the security papers cannot exceed Br369.0472 million across all currencies in accordance with the official exchange rate as of July 1.
Later on the Vitebsk region administration will have to use the money to acquire active assets as part of lending contracts and the relevant rights recorded as of July 1. The Vitebsk region administration will have to buy the assets in accordance with the business plans that the core companies and the enterprises they will take over will have to put together. The business plans are supposed to guide the development of the core companies and the enterprises until all the commitments as part of lending contracts are honored.
The core companies and the enterprises, they will take over, will have to open special bank accounts in order to pay the money they will owe to the Vitebsk region administration in accordance with the relevant debt assignment contracts.
The Vitebsk region governor will be personally responsible for fulfilling the presidential decree.
The document comes into effect as of the official publication day. (BelTA/Business World Magazine)
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