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Anatoly Shumchanka: Growth of single tax to become last drop for many sole traders

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Anatoly Shumchanka: Growth of single tax to become last drop for many sole traders

Owners of markets and shopping centres are raising alarm: people are quitting their business. And those who have not quitted, are going to do so in March.

Today an initiative of Minsk city executive committee has been announced. The rate of the single tax for sloe traders is to be offered for a public debate. All concerned persons can express their opinion via email. As said by the chairman of “Perspektiva” public association, Anatoly Shumchanka, a meeting of sole traders at the premises of Minsk city executive committee is to take place as well. It is scheduled for November 20, 10 a.m. in Myasnikou Street, 39. The businessman states that sentiments of sole traders are extremely negative now: people do not understand, how it is possible to continue “stifling” them further, as even now there are hardly any buyers.

- I visited markets, shopping centres, I talked to sole traders, and a very interesting thing has become clear. There is no “life” for businessmen after March 1, 2015. They have chosen this date as “the end” of their activities. For instance, when goods were seized from private entrepreneurs, and a woman was standing nearby and crying, she said in a fit of anger, that she had planned to work until March 1, and then, “you understand, I would not be able to work.” Other sole traders say: “Why taxes are increased for three months for us? We are going to work until March 1 only!” It means, that businessmen have already decided about their finishing the career and work.

- Is it true that even now sole traders are closing their businesses, and markets are becoming empty?

- Yes, more and more owners of shopping centres and markets address us. They start telling us that the number of visitors of markets and customers has dropped, trading places are becoming empty… Businessmen are quitting. By their actions the government has already done an enormous harm, and we had warned about that a year ago. Only now we start to feel that. People quit business; the number of trading places is dropping. It is natural that no new working places are created.

Let me give a little example from the real life: a man had three trading places, he was doing his best to keep them: sometimes he borrowed money, took out loans. After he learnt what will happen after March 1, he closes two out of the three trading places, and leaves one of them, which is profit-making, and which is to support his family for the nearest time at least. And there are dozens thousands of such businessmen! The authorities have caused irreparable reputational losses to the Belarusian business. So one should not be surprised by what is going on now. Never before shopping centres and markets had so many empty trading places. And it happens in the centre of the city! It is not a secret any more.

- Another Forum of businessmen will take place on December 8. What are you going to demand from the government?

- Some people may think that the Forum is nothing special, people just gather to talk, and then break up, but it is not true. Everything is under control. If passions will run high, and there will be many participants, there are better chances that dogs would not be set on us. There are activists at every trade outlet, and we are going to hand out leaflets soon. Today to voice one’s position is really a deed for many people. And there are many problems, the situation is alarming, but in order to solve problems, we should be united. Our main aim is to make the state give us a possibility to sell stock-in-trade without any terms. Let them leave us goods. People say: “Trade is at a standstill, we cannot sell the stock on time.” Many people are indignant: “What can we do with the left-over stock? Should we throw it away?” In case the state could buy these goods, we are ready to sell them.

- Minsk city executive committee is going to increase the single tax for Minsk sole traders by 25%. Why only for Minsk ones?

- As a rule, taxes grow simultaneously. In case the rate of the single tax increases by 25% for Minsk sole traders, we are to observe the same in all regions later.

- What will this growth of the tax mean in practice? Is it an exact figure already?

- Last year they wanted ton increase it by 40%. We asked to make it 15%. And finally they increased by 17%. This year they want a 25 % growth, we wrote about 12%, and we’ll see how high the rise will be. But the increase of the tax will result in inflation growth committed by the hands of the government itself, as it would mean increase of consumer prices. And who needs that today? In our address we have written it directly: it’s high time to stop this price, inflation and taxes’ race. Enough of that! Let’s try living like humans. We will not increase prices, in case you would not stifle us by taxes. This tax rise is to cut away another part of small businessmen, who would not survive. For many sole traders it could become the last drop in the river, which is flowing now in the form of documents, certification, and the public outcry related to March 1.

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