Anatoly Shumchanka: It’s not business, it’s Soviet-rooted surplus-appropriation system

In Belarus, tax burden is 15-20 per cent higher than in Ukraine, Russia and Kazakhstan. Can Belarus be competitive at least within the Customs Union under the circumstances?

Viktar Valushytski, the member of the House of Representatives suggested introducing local commodity tax, which would apply to goods produced outside countries-members of the Customs Union. “Retail traders, including individual entrepreneurs” are to pay this tax. The Enterprise Board of the Ministry of Economy asked the opinion of the Republican Public Association “Perspective” about this suggestion.

Anatol Shumchanka, the Chairman of the Republican Public Association “Perspective”, commented upon yet another tax initiative to the EuroBelarus Information Service.

- The impression is that both the executive power and the legislative power can only divide and take way. Before that the government used to announce about the increase of the existing taxes as well as about the introduction of new ones.

Now the new player appears – the so-called “people’s deputy”, who suggests to introduce local commodity tax, which will allow to increase the competitiveness of domestic goods. Either the deputy doesn’t understand, or he intentionally confuses people, as any increase of taxes boomerangs against consumers.

The state is trying to impose as many taxes as possible, forgetting about the purpose of business: to get profit that would serve as an engine for the economy. In Belarus, tax burden is 15-20 per cent higher than in Ukraine, Russia and Kazakhstan. Can Belarus be competitive at least within the Customs Union under the circumstances?

- Have the entrepreneurs counted what losses can the introduction of the new tax bring?

- If the authorities keep taking away the last from the people and constantly fill in holes in the budget using common people, then sooner or later, it will result in a social outbreak.

However, the fact that the Ministry of Economy is consulting with the civil society, with the “Prospective”, is reassuring. It means that it has sensible people who understand the consequences of uncontrollable taxation.