Price Raise in Minsk :: Charter'97 :: News

The Minsk authorities used the opportunity provided by the state budget and increased the tax on cost of goods and services. As a result, since the last weekend customers appeared in the situation when they couldn’t believe the price tag, reports the Radio Svaboda.

An unpleasant discovery was made by customers of public catering and communication services, hairdresser’s, and solariums last week. In compliance with the city authorities’ resolution the local tax on sales and services has been increased by 10 % affecting instantly the prices. The details are explained by Aleg Krauchuk.

“In compliance with the budget of 2007 local administrations are entitled to increase the local sales tax by 10 %. Previously it was 5% but now it has become 10%. And for certain goods a raising ratio is stipulated that also means additional taxes. On the whole, for the Minsk customer everything has become more expensive”.

The most part of economy operators have either ignored or negligently missed the new realities. Even customers of esteemed gallery of prestigious lightning accessories “Massive” found the discrepancies between price tags and bills paid by them only after coming back home. Senior shop assistant of the gallery Volga Bagdanava explains that the document instructing on the tax raise was received only 8 February. By the way, the instruction itself became effective a week ago.

“For instance, if the lamp costs 700-800 Belarusian rubles. A 10% tax increases the cost by 80 thousand. We got information about the above-mentioned only yesterday (8 February- according to the RS); the bookkeepers were obliged to urgently correct the prices. And, on the whole, it presumably came into force 1 February. Moreover, the tax on imported goods has increased from 5 to 15% -they say for the local manufacturer protection”, Volga Bagdanava explains.

However, when price tags of the lamps bore old prices the cash desk functioned according the new rules. Inattentive customers having been one day late, consequently, overpaid considerable sums. However, Ms Bagdanava does not agree that the price revision has taken place “after the fact”.

“ It is not so important that it was “after the fact”. It is more our problem .The thing is that we lost on the tax. It means that our tax expenses will grow. Without definite sums having been received we’ll bare losses because the prices were not corrected on 1 February but only now. And certainly we are not happy with this. And actually neither additional efforts nor price raise will result in sales volume increase. Unfortunately it is not pleasant to anybody. We are simply made to fulfill the requirements, which are equal to everybody. But we won’t be able to compensate that. How can we?» the shop assistant says.

Leader of the”Perspektiva” organization for protection of entrepreneurs Anatol Shumchanka predicts a more considerable price hike for goods and services that will directly affect common consumers.

“Taxation law comprises several taxes which are necessary to be paid. And costs will, any way, go up. And just in case: who will pay the taxes? The consumer! We foresee that consequently you and me, the consumers, will become the major victims. Starting with gasoline stations and finishing with socks and shoelaces. Prices are certainly going to change but not beneficially to you and us.”