New ‘Letters of Happiness’

"Financiers" in the government are falling into the same trap twice.

Belarusian entrepreneurs receive "letters of happiness" from the tax authorities.

Thus, the authorities decide to remind them of the need for payment processing equipment. Independent journalists counted that the use of state equipment would cost each individual entrepreneur an additional Br200 per month.

Is it much or not? Why does the rest of the world install payment processing equipment without "letters of happiness," while our country requires it?

Public activist and the representative of the Belarusian National Congress, Viktar Marchyk, answers questions of Charter97.org.

- What do additional expenses of Br200 per month mean to the Belarusian IE nowadays?

- Br200 now is actually half of the average monthly salary of the Belarusian IE.

I have recently talked to new Slonim entrepreneurs and been told about the current situation. "We open our business and waste more than half a month to pay taxes. We have about 300-400 rubles left at the end of the month," that's what I was told.

If IEs spend other 200 rubles on maintenance, they will have only 100-200 rubles left. That is, IEs will earn even less than people at state enterprises.

This idea does make any sense. It will result in even more active closing down of businesses and the state will lose even more money. Income taxes and contributions to the pension fund, which are already facing hardships, will not be paid.

As a result, the state suffers losses. I don't know who gives advice to the government, but it's complete nonsense.

It is clear that this scheme with the payment processing equipment may bring some money, but entrepreneurs now do not earn sacks of money.

Secondly, somebody produces this equipment and wants to sell it. And I guess this person has ties with the authorities, that's why it is decided to oblige everyone to buy these products. This person is looking for ways to increase income. And the authorities are falling into the same trap, stealing from entrepreneurs who are treated as a source to raise money. They miss long-term thinking.

- Are there any guarantees to "have a good sleep" when the equipment required is bought? Or may there any other extortions be imposed?

- The thing is that the state processing equipment holds many pitfalls.

It needs registration, software, regular payments to the specialist who would come and maintain it.

It bears more costs that are a burden of IEs. It is not so that simply "took - bought - put". Losses of entrepreneurs will increase significantly.

- But small entrepreneurs use payment processing equipment voluntarily all around the world. Why is this seemingly insignificant innovation turning into a special operation in Belarus with "letters of happiness" from the tax authorities?

- As I have already said, the monopolist-producer connected with the power is involved here. Apparently, this manufacturer has really good ties among high-ranking officials who lobby his interests.

Europe has a lot of manufacturers of payment processing equipment, which causes competition between them. Entrepreneurs are looking for the device at the lowest price. We miss the competition and an entrepreneur is forced to buy the equipment and maintenance at an unfavourable price.

In addition, conditions for small business and the purchasing power of the population in Europe cannot be compared with ours. In Poland, an entrepreneur gets an interest-free loan from a bank in the start. For the first five years, an entrepreneur is not disturbed at all.

We do not have such conditions. We only see a "beautiful picture" of BT TV channel. That's why European entrepreneur buys and uses this equipment to ease his activity. It a problem for us.

In addition, one fact should be taken into account: Belarusian payment processing equipment works for the tax authorities. They aim to show all the receipts in the tax office at once. Thus, the tax authorities can see how much income is raised.

To put it simply, the tax authorities have come up with a method to monitor every movement, every purchase. This equipment is aimed at total control of an entrepreneur. But you shouldn't think that it's just a burden of IEs. After all, the tax office gets prompt access to data on all purchases. And people with low income and unemployed may also fall under the spotlight of the tax authorities.

Every step will now be displayed in the tax office.

- Recently, the head of the Belarusian light industry, known for her attacks on second-hand shops, said that Belarus shouldn't turn into a "bin for second-hand things." How can this war of the state concern with "second-hand shops" end for IEs?

- It's not just a war with merchants, it's a war with customers. Second-hand shops have become the way out for ordinary people. There are good, almost new things there that you won't find at such a price in Belarus.

And even people who can be called the "middle class" come there to buy things.

Of course, it is not profitable for the state concern. Our country only knows the whip approach, so entrepreneurs will be "stifled" to promote the state's products.

Right now my friends among entrepreneurs say that Minsk second-hand shops are being inspected. I think inspectors may find a "reason" to close such a shop.

But all this is done not for people, but for monopolists from the state concern.

Look at markets of Belarus: there are almost no young people among IEs - they've all gone to work abroad, while many of them have stayed there. People of pre-retirement and retirement age have remained in the markets. Of course, they will try to survive by any means and it is unlikely that Lukashenka will be able to "shake hands with the last entrepreneur". People are very persistent.

But the very issue why IEs should survive is crazy. All developed countries bet on entrepreneurs, on the promotion of small and medium-sized business. Only here it is considered as a "curse".

Officials seize the day, filling their pockets and trying to oust small business for the sake of their own "projects". But, as I said before, this power is falling in the same trap twice.

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