Viachaslau Pilipuk: The authorities push business to emigration

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Belarusan authorities didn’t decide but only postponed the problem of documental support of the work of individual entrepreneurs. Does it satisfy the entrepreneurs themselves?

Belarusan individual entrepreneurs would be able to sell goods of light industry without documentation that confirm their purchase up to January 1, 2016. After that they will be able to work only with documentation. During the year rate of VAT will increase by 3 times. Documents that confirm the quality of goods will be required from January 1, 2016. It was announced on February 17 during Aliaksandr Lukashenka’s visit to the Minsk trade and entertainment center “Expobel” and his meeting with the representatives of Belarusan business there.

Thus, the decision of the problem of selling goods of light industry without documentation is postponed for 9 months, but how efficient is this delay?

These questions “EuroBelarus” Information Service discussed with Viachaslau Pilipuk, the representative of the Republican Public Association “Perspective”.

- Lukashenka has finally heard the scream for help and met with individual entrepreneurs. The decision about the rules of further work of individual entrepreneurs is taken. How have the entrepreneurs themselves taken this decision?

- In situation when people have started abandoning their working places since February 28 any distraction is good for them. But if we look at the problem strategically, individual entrepreneurs got the possibility to work without documents only until January 1, 2016. The problem isn’t solved but only postponed.

For now entrepreneurs are happy with the meeting, but the question remains open. No one denies that import from Russian Federation to Belarus has a right to exist. However, at wholesale depots of the Customs Union, namely in Moscow, no accompanying forms for goods are given. So in order to establish order at the markets of the Customs Union, we need to start from establishing order in the Russian Federation.

- Work without documentation is being prolonged till January 1, 2016. After that entrepreneurs will be able to work only with documentation. During the year rate of VAT will increase by 3 times, stated the Prime Minister Andrei Kabiakou after the meeting with entrepreneurs. How will it work in practice?

- The remaining nine months will be divided into three stages, during which rate of VAT will be gradually raised.

We expect that the situation of March 1 will be repeated if entrepreneurs are not able to pay increased taxes. The threat over entrepreneurs remains. We need to find other ways to solve the problem.

- The state has chosen a non-civilized way of solving the problem: individual entrepreneurs were allowed to work without documents, but will have to pay more taxes. Why did the authorities ignore the other solution: to simplify the procedure of getting the documents by making it transparent and available and thus giving the entrepreneurs a possibility to work within legal boundaries?

- The reason is hidden in the attitude towards private business in Belarus. Since 1994 the state pursues the policy to enforce the state sector in the economy. While the authorities responsible for the economic block are building command-administrative economy in accordance to the Soviet pattern attitude towards entrepreneurs won’t change. The authorities create the most favorable conditions for state enterprises that compete with individual entrepreneurs. And until the state increases the role of state enterprises private business will be neglected.

Lukashenka talked about creation of equal economic conditions and competition. However, in our case, competition has become unfair: the state creates favorable conditions for state enterprises at the legislative level, whereas private business should compete with them. But real competition is only possible when the state creates equal conditions for everyone.

- How are individual entrepreneurs going to survive in this situation?

- The answer is in the nature of entrepreneurship. Some individual entrepreneurs are busy looking for other employment, some look for opportunities in the countries where the authorities create conditions for business, or, at least, don’t destroy it. More and more entrepreneurs move to Smolensk, Briansk and are ready to commute there each day. About 30 per cent of entrepreneurs are ready to emigrate, and this figure is constantly growing.

Even in the current situation it would be possible to fight; however, purchasing power of population is decreasing, which means that entrepreneurs won’t be able to get profit. If there is no profit, what is the meaning of making business?