OREANDA-NEWS. The Government of Belarus has developed a new provision on tax regulations for the state-owned Belarusian company OAO Belaruskali, whereby the potash manufacturer will end up paying to the central budget up to Br1 trillion in surplus quarterly profits, a source in the Belarusian government told.

The new provision was prompted by the necessity to optimize the taxation mechanism for Belarus' potash export company, the official explained. The new scheme awaits the approval of the head of state.

As previously reported, the effective period of the zero customs duty on exports of potash fertilizers from Belarus has been extended till December 31, 2014, in accordance with President Lukashenko's ordinance #138 of March 31.

In September 2013 President Lukashenko signed an ordinance whereby potash fertilizers were subject to zero export duties from September 1, 2013 till December 31, 2013 for the sake of ensuring stable operation of OAO Belaruskali. In early January 2014 Belarus extended the effect of the zero customs duty on potash exports till March 31, 2014.

In 2013 OAO Belaruskali exported 3.437 million tonnes of potash fertilizer (in terms of 100% potassium chloride), 2012 - 3.668 million tonnes. Belaruskali's export proceeds reduced 22.2% year-on-year in January-December 2013 to USD 2.063 billion.

The state-owned Belarusian company OAO Belaruskali is one of the world's largest manufacturers of potash fertilizers, employing about 18,440 personnel. It operates the Starobinskoye potash salts deposit and comprises four mine groups, auxiliary shops and support units.

Belaruskali controls more than 16% of the world's potash fertilizer market. Belaruskali facilitates potash exports through OAO Belarusian Potash Company.