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. Last Updated: 07/27/2016

Belarus Strips Ford of Some Tax Breaks

MINSK, Belarus -- Belarussian President Alexander Lukashenko has stripped a $20 million Ford car plant of some tax breaks after coming under pressure from Moscow to slash fiscal aid to the car industry.

A presidential decree published in the national press Tuesday said the Ford Union joint venture would lose its exemption from customs and excise duties as well as value added tax, or VAT. But the outfit -- which produces Transit vans and Escorts, mainly for the Russian market -- would still benefit from a tax holiday on its profits, according to the decree.

The fiscal advantages were only granted to Ford Union, 51 percent of whose shares are held by Ford, July 15.

An official with the presidential administration said the decision to scrap some of the tax breaks came after Moscow complained that car producers in Belarus were undermining production in Russia.