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Lukashenka is afraid to meet with sole traders

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Lukashenka is afraid to meet with sole traders

Entrepreneurs require abolition of Decree No. 222.

The Belarusian authorities say that Decree No. 488 on "pseudo-entrepreneurial" activity would be terminated on January 1, 2019.

Deputy Finance Minister Dzmitry Kijko said that the register of pseudo-entrepreneurs as such would no longer exist since January 1.

What does that mean in practice? Will it really ease the fate of Belarusian entrepreneurs? The representative of the Belarusian National Congress in Slonim Viktar Marchyk answers questions of Charter97.org:

- I don't think the fate of the Belarusian business will improve. It's not about official's promise not to update the base of "pseudo-entrepreneurs", but the state's attitude towards entrepreneurs as such.

In addition, the authorities have taken a trick: they declare they will abolish Decree No. 488, which is now generally "archival". The fact is that almost all entrepreneurs are now working under the decree, and the decree ruins small and medium businesses.

We want to abolish the decree. By and large, this is a matter of survival of the Belarusian business.

- What else does actually bother business in Belarus?

- Fierce competition with Central Asian traders. As soon as our entrepreneurs started working under Decree No. 222, their goods improved in quality, but we lost out drastically to Asian traders as regards the prices.

They deliver cheaper, goods of poorer quality without proper documentation. And since prices are growing in the country and living standards are declining, buyers turn to traders from Central Asia.

Asian stores, along with other factors, turned markets into a desolated place. Taxes, contributions to the NSSF and rent are mandatory, regardless of sales. Additional chargeshave recently been imposed and it also hinders business.

By the way, local authorities queer the pitch for their own, turning a blind eye to violations of Asian traders. After all, they pay taxes not to the local budget, but at the place of registration. In Slonim, for example, we have had only two Asian shops, and now there are many more. As a result, the budget gets less taxes, entrepreneurs go bankrupt.

- You say that it's not about certain decrees, it's about the state's attitude towards individual entrepreneurs. Has anything changed here since Lukashenka called entrepreneurs "lousy fleas"?

- We hear things like that all the time. At the same time, it has been broadcasting since about 2000, that something's being "developed" and "improved".

As practice shows, there are no "improvements" for entrepreneurs. On the contrary, the transfer of business abroad, the closure of business and emigration has become a mass phenomenon.

Official statistics is trying to assert an "increase" in the number of entrepreneurs. It is not true. In fact, it's formal activity of people who do not want to be enlisted as " parasites". Most often they do not engage in any real activity.

- This attitude, so to speak, is practiced from the very top. And how do those who are in direct contact with entrepreneurs- local officials, regulatory bodies - treat them?

- Right now inspectors and tax authorities are not annoying. But at any moment, as soon as they are ordered "attack!", they will rush to "inspect" entrepreneurs.

And Decree No. 222 grants them wide powers here. Because almost all documents for goods they receive at wholesale markets are issued for either non-existent or fly-by-night companies. And the first more or less in-depth audit of the FIU (Financial Investigation Department) they turn "fake".

Objectively, individual entrepreneurs are not guilty of this; they have no opportunity to check a provider of documents. Russian wholesalers should control this, but as always, an inspectee is the one to blame.

Even though we pay taxes, rent...

- Speaking of rent. "Expobel" market has recently kicked out 25 entrepreneurs in Minsk, only because a chain store needed space. Does it prove powerlessness of entrepreneurs?

- Yes, of course. We have the same situation in Slonim. Our market place belong to the district consumers society. And it means money out of thin air. The district consumers society use it to fill holes in the budget.

Therefore, if a larger investor comes to the market and offers more money, individual entrepreneurs are simply removed from the market. It's not about the law but a self-regarding interest.

- You said that abolished Decree No. 488 was less relevant than Decree No. 222. Why did the authorities need this trick?

- It's hard to say. It turns out they lied to entrepreneurs. And their reasons need analyzing. See which way the cat jumps.

But the simple truth is that entrepreneurs are now working under Decree No. 222. Abolition of Decree No. 488 will cause only a slight relief. The major obstacle to trade is the obligation to have waybills for any product. And if the authorities order "Attack!", all small businesses can be closed under decree No. 222 in one day. With huge fines and large-scale confiscations.

- What do you think a way out?

- Entrepreneurs have to stand for their rights. The main requirement now is to abolish Decree No. 222.

Waybills must be replaced by a patent. ROO Perspective together with entrepreneurs and economists has developed a fairly reasonable draft law on introduction of the patent system.

The authorities are aware of the content of the document, but apparently do not want to meet us.

It is clear that one person solves such issues in the country. But he has already received so many proposals of businessmen that it's time to wonder what kind of person you are you if you're afraid to meet us?

If Lukashenka is afraid to meet with businessmen and answer their questions, it describes him and his policy.

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