Lukashenka wants to clear stocks at the expense of sole traders

The new decree of the ruler aims at clearing stocks at the expense of sole traders.

Such an opinion has been expressed by the chairman of the council of “Perspektiva” republican public association Anatol Shumchanka in his interview to charter97.org website.

- On Friday Lukashenka signed a decree that prohibits any trade without certificates and accompanying documents for sole traders since July 1. At the same time, they are allowed to hire workers. What does it mean in reality and what was the reaction of businessmen to these novelties?

- We have expressed our position on hired help and this decree at the forum of businessmen, and we support only the decision on hired help. However the conditions in which we are allowed to hire them, are not different in any way as compared to the previous ones. Previously when a corporate entity was established, in particular, a private unitary enterprise, for instance, one could hire workers. And now in fact the same system is offered for sole traders, and since July 1 they are to act according to patterns of a corporate entity, that is, to have accompanying documents and the rest of it. So businesspersons are not running around happily after salaried employees were returned to them.

- What future do sole traders have after this decree comes into force?

- The overwhelming majority of sole traders would not be able to work under the new rules. If there would be endless inspections and checks in the places they work and check-ups of trucks with goods in the roads, I guarantee that 80% of sole traders would not be able to work in accordance with this decree and do business. And the state is to lose also, as decrease in number of trading places is underway, that is, people do not expand their business. It means, no new working places are created and tax revenues are to dwindle. In addition, some businessmen would have to leave the system of paying a single tax and adopt the simplified taxation scheme, and according to tax inspection estimations, this would cause at least 33% of budget losses, but we predict 50%. This decree is possibly aimed at re-orientating sole traders to clearing stocks of Belarusian-made goods. But this would not be realized as well, as in order to clear stocks, one needs competitive prices. We addressed these issues and found out that retail prices are equal to wholesale prices. And I predict that prices are to rise because of these changes.

- How the situation is to evolve, and what is your plan of actions?

- The situation can evolve in absolutely different ways, and it is impossible to predict. But one can say for sure that in case the state would carry out inspections instead of finding the middle ground, it is to provoke sole traders and their dissatisfaction very quickly, and the tensions are to grow. For many years “Perspektiva” had been fighting and is continue to fight for the rights and interests of sole traders. In June we plan to hold a forum of country’s businessmen. Moreover, we plan to organize such events in Minsk and in the regions at least once in two months and urge mass media to pay attention to our problem.