Govt Suggests New Way Of ‘Dekulakizing’ Businessmen

The authorities have come up with new ideas how to confiscate goods and fine the business.

The Belarusian government is to change approach to the goods confiscation. This was said today by Director of the National Center of Legislation and Legal Research Vadzim Ipatau after the meeting with Aliaksandr Lukashenka, during which they discussed the draft law concerning the introduction of amendments and addenda to the Administrative Violations Code and the Code of Execution Procedure on Administrative Violations, BelTA reports.

"This bill is a systemic, complex one. It provides for the correction of administrative responsibility in various spheres. It also has a large block concerning the liberalization of business, — Vadzim Ipatau noted. — The issue of confiscation seems an important moment. The business community constantly raise this issue, claiming that the state uses excess asperity when applying this administrative sanction.”

It is planned that the scope of confiscation will be substantially reduced, and mandatory confiscation will be preserved only with respect to banned items: extremist materials, falsified alcohol, products contaminated with radionuclides above acceptable levels or of poor quality, that may lead to disease or poisoning of people.

“It is envisaged that all the income will not be confiscated completely, as is done now, with respect, for example, to illegal business activities. A certain percentage of this income will be set, — the Director of the Center clarified. — Moreover, alternative confiscation will be included in the list of norms. In such situation, it will be the court which will take a decision, having considered all the circumstances of a case and the character of an offence.”

The document also envisages reducing the amount of fines with regard to 45 administrative offenses and expanding the possibility of applying an alternative measure — prevention. It is assumed that it will be introduced into the 21 norms on liability. Among the innovations proposed by the bill there are clear criteria for determining the insignificance of an administrative offense against business entities and entrepreneurs.

“A number of state bodies joined our Center and actively participated in the elaboration of this norm, — Vadzim Ipatau said. — An economic subject will be brought to administrative responsibility only in case of causing damage to people’s lives and health, or threat thereof, or significant material harm of over 40 base fees. This is the cost of the subject of an administrative offence, the revenue sum or the damage that can be calculated.”

The norms of insignificance will be applied to administrative offenses, which are contained in chapters 11-14 of the Administrative Code. Among them there are offenses in the field of entrepreneurial activity, against taxation and customs regulation, in the sphere of finance, securities market and banking. The head of state approved the approaches set forth in the draft law and instructed, in the established manner, to study the issue of submitting the document for consideration to the parliament.

“Now it’s time for our deputies to step in, so that this document is considered thoroughly with no delay. They also need to consider all pros and cons with regard to the corrections which were included in the project, taking into account the experience of the deputies”, — the Director of the Center noted.

Vadzim Ipatau drew attention to the fact that during the elaboration of the bill, the experience of other states was studied.

“The countries like Moldova, Russia, and Kazakhstan are trying to address these issues, but there is still no such thing as is written in our draft. And the approach that is typical for Western European countries is laid. This is really a step forward and it is quite serious,” — he said. The work on improving the business climate in Belarus will not stop here, Vadzim Ipatau stressed.