Valery LEVANEUSKI - personal site  
 
 
April 11th, 2007. Posted in News from Belarus

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“Make a fool of our brother, oh make a fool”! The Ministry of Economics not according to with reasons of entrepreneurs

The leader of entrepreneurs Valery Levaneuski has received the answer from the Ministry of Economics signed by deputy minister A.N.Tur from whom the estimation of the decree №760 at businessmen and the Government opposite follows, that, that we are fine in social sphere and even better, than several years ago, and municipal services in general have fallen in price. Very interesting figures from which follows a result, that our Government lives in any virtual world and continues to build virtual Belarus where Belorussians to live every day all better and better.

So, in opinion of officials from the Ministry of Economics, the average Belarus family spends for housing-and-municipal services less than 10 percent from the income. These figures whence undertake, remains a riddle at whom such incomes, too it is not clear, can at officials from the ministry. Pensions, salaries and all rest at us grow; it appears, with enormous speed, according to the answer from the ministry. Remains while not clearly why Russia is overflow guest workers from Belarus. Many our fellow citizens do not live up to pension. Whence at us so much poor and drinking? Why even in prisons of Belarus there is no work, and those who works, receives some dollars a month.

Well-known, that last years Belarus were struck with a terrible virus under the name “television Belarus”. Distinctive feature of this virus that from screens of TVs day and night we see any the strange serial reminding fairy tales of Andersen with that only by the amendment that convince us are we so well live. Probably, this virus has got and into all the ministries of Belarus which have learned to prove with figures, that the ground square, black this white, and a minus is plus.

Certainly, it would be desirable to thank the Ministry of Economics for validity of the position on five typewritten sheets. But any person in the slightest degree understanding these figures, will say the well-known Raikin’s phrase: “Make a fool of our brother, oh make a fool!”.

As to acceptance of the decree of №760 and other similar acts Valery Levaneuski considers, that their reasons lay on a surface.

1. The Ministry of Economics has started to lobby interests of average and large business, superseding from the market of individual businessmen, as competitors. It is possible to prove everything, everything. A question is – what for? The General phrase is: “The given measure provides transition of individual entrepreneurs from the unorganized market on more civilized level of economic activities”, – is absolute about what does not speak.

2. Each official should show the importance, that it for something is necessary. Here also “are born” in calm of cabinets different “products” in the form of instructions, projects of decrees, decrees. And, it is frequent – “crude” and unnecessary statutory acts. Work on a shaft. The more officials, the there is more than “literary trash” from them.

3. Absence of serious analysts and lawyers in the ministry is observed, capable in a complex to count even for some years this or that situation, after acceptance of the act. All is accepted by a method «attempts and mistakes». I.e. at first the law passes, and then look, that from this it will turn out. It is one of principal causes of often varying legislation in Belarus.

Former political prisoner Valery Levaneuski recommends our officials to not invent a bicycle, and even to analyze experience of our neighbors and to take there from all useful, in fact work entrepreneurs in Ukraine, in Russia, in Lithuania, to Poland without participation of our officials and do not ask to help .

It is a lot of Valery Levaneuski’s questions have remained without the answer. Correspondence will proceed.

Below the full text of the letter of Valery Levaneuski in Ministerial council of Belarus which has been originally withdrawn from Valery Levaneuski at a search and detention of 3/12/2007, and the answer to it from the Ministry of Economics is brought.

- In Ministerial council of Byelorussia – the Application about necessity of acceptance of urgent measures on development of small business and under the sanction of social questions

- The answer to the Application about necessity of acceptance of urgent measures on development of small business and under the sanction of social questions

The press-service

Administration of the president of Byelorussia

 

Ministerial council of Byelorussia

The application
About necessity of acceptance of urgent measures on development of small business and under the sanction of social questions

Again the government of Belarus tries to compensate the miscalculations in economy due to individual entrepreneurs. 20-th decree of President of RB from December, 27th 2006г and the DECREE of PRESIDENT RB from December, 29th, 2006 760 « About entering additions and changes into the Decree of the President of Byelorussia from June, 18th, 2005 285 » confirm it since even more complicate work of individual entrepreneurs.

These acts are consequence of policy spent by the government concerning development of small and average business. Acting, in words, in support of development of business, the government, in practice, does everything in every possible way to complicate activity of businessmen. Last decree of President RB №119 from March, 9th 2007 « About the simplified system of the taxation », called to soften a negative consequence of the decree №760, and does not change an essence of an event.

The decree №760 creates visibility, that the legal person is more civilized organizational-legal form, than individual entrepreneur. In the decree the aspiration of government officials to supervise all monetary streams individual entrepreneurs that in the subsequent to take away them to the formal and far-fetched attributes is obviously looked through and to dispose of them at own discretion.

Today individual entrepreneurs.cannot be assured of the future since legislation of RB varies continuously, no stability and predictability is present. Official officials approve about blossoming the Belarus economy. But it will not coordinated with increase of real tax loading on individual entrepreneurs, with sharp increase in municipal and other payments for the population which are the highest in comparison with our neighbors in relation to an average real payment Individual entrepreneurs of. Belarus taxes and other payments in the budget in sizes, in some times exceeding similar payments at neighbors today pay. Today the individual businessman pays in the budget of taxes and other payments of average wages more received by the population. Officials of it have not enough and they continue to increase tax and other loading by entrepreneurs. by complication of the legislation and increase in penalties.

At social protection by the state discrimination on an accessory to small business is carried out. Cases when mums involved in small business, at a birth of the child are on welfare from the state on pregnancy and sorts in some times less, than those who work on low-paid works in the organizations are frequent. The same situation is both on payments of “sick-lists” and on other social questions.

Criminal prosecution causes bewilderment of entrepreneurs to the formal and far-fetched attributes. A vivid example is a case of entrepreneur Avtuhovich which worked according to recommendations and explanations of experts from the ministry. These recommendations in couple of years have been recognized wrong and the person has put in prison for long term with confiscation of property. In the country the system is created, at which extortion of bribes is already norm. Who refuses to pay bribes that get in prison? And it is not important, as you work and pay taxes, and the most important to find contact with checking since the current legislation allows to ruin and plant{put} any businessman in prison with confiscation of property.

In connection with the above-stated I offer:

1. To enter the moratorium on the edition of decrees and the decrees worsening conditions of enterprise activity, to cancel 20-th decree (regarding restrictions on sale of perfumery) and the decree №760 (2006).

2. To enter the moratorium on increase of straight lines and indirect taxes three years.

3. For individual entrepreneurs, paying the uniform tax to cancel books of the account of the goods and waybills with which the businessman is obliged to fill daily (without the bookkeeper to not understand).

4. Social insurance of individual entrepreneurs and other payments in the budget and inappropriate funds to make from the uniform tax paid by would manage to avoid numerous problems with fund of social protection.

5. To reduce the list of the goods which is a subject obligatory hygienic registration and certification?

6. To hang out in the markets stands with samples of filling of documents of entrepreneurs (cash warrants, unprofitable, etc.)

7. To begin dialogue with individual entrepreneurs, instead of with it is artificial the pseudo-public organizations of businessmen completely under control to administration created by administration.

8. To lower the rate of the uniform tax and rent for trading places twice.

9. To stop criminal and administrative prosecution of individual entrepreneurs to the formal and far-fetched attributes.

10. To lower cost of municipal services for the population to a level of 1994 when payment for municipal services made no more than 15 percent of an average payment (today cost of municipal services exceeds wages of many citizens of Belarus and comes nearer to average wages).

11. To provide equal social guarantees of the state to mothers and families at a birth of the child without their discrimination to professional and other attributes.

12. To establish the minimal wages and pension at a rate of two hundred Euro, the unemployment benefit and the grant at a rate of not less than 100 Euros a month.

The note: These economic requirements will be put forward on forthcoming protest actions of individual businessmen (the meetings, forthcoming one-day strike on 3/25/2006, etc.).

Yours faithfully

3/11/2007 Valery Levaneuski

230005, of Grodno-5, 63,
www.levonevsky.org, Тел.8-0296-313062

The answer from the Ministry of Economics of Byelorussia on Levaneuski V.S.’s application:

About consideration of the reference

The Ministry of Economics has considered your reference which has acted from the Device of Ministerial council of Byelorussia, and within the limits of the competence informs the following.

In connection with acceptance of the Decree of the President of Byelorussia from December, 29th, 2006 760 (further – the Decree 760) individual entrepreneurs since January, 1st, 2008 can carry out the activity individually or with attraction of members of family and close relatives (the spouse, parents, children, the adoptive fathers adopted, native brothers and sisters, the grandfather, grandmother, grandsons).
Introduction of the designated norm of the Decree 760 since January, 1st, 2008 enables individual businessmen to continue within this year to work within the limits of the developed system, and in the subsequent to choose a way of the further development. The given measure provides transition of individual businessmen from the unorganized market on more civilized level of economic activities.

The given process is connected with necessity of settlement of a lot of the questions concerning: the order of the termination of activity of the individual businessman and cancellation of contracts with hired workers; simplifications of conditions of formation of the authorized capital of the commercial organization; definitions of the order of transfer of the rests of the goods to the created legal person and opening of accounts in banks; preservations of validity of special sanctions and other allowing documents; definitions of a site of again created commercial organization as now there is no enough of the areas which can be used in enterprise activity and others.

The above-stated circumstances specify expediency of an establishment for the certain period of time of special conditions of creation of the commercial organizations by the individual businessmen registered in the given status at the moment of acceptance of the Decree 760.

In these purposes the corresponding project of the decision of the Head of the state which now is on consideration in the Government now is prepared.

Positions of the given project of the normative legal act have been considered at session of working group with participation of representatives of the state bodies and the individual entrepreneurs, taken place in the Ministry of Economics on February, 27th, 2007

Also, we believe possible to pay attention, that the size of a rent for the trading places, given to tenants in the markets and other trading objects of an individual pattern of ownership, it is defined by lassoes of trading places according to base rates of a rent for the trading places, given to tenants in the markets and other trading objects of an individual pattern of ownership, for settlements of Byelorussia, the approved Decree of the President of Byelorussia from March, 24th, 2005 148 “About some measures on support of business”.

It is necessary to note, that the question of a rent designated in your letter, infringes on interests as the tenant, and lessor, and decrease in its size can be limited by the objective reasons which lessor considers at a substantiation of rates of a rent.

In turn, acceptance of the Decree of the President of Byelorussia from December, 26th, 2006 20 (further – the Decree 20) has been caused by necessity of increase of efficiency of the state control over manufacture, a turn and advertising alcoholic, not food alcohol-containing production and not food ethyl spirit.

The government does not support requirements of individual businessmen about non-distribution on them of point 8 of Regulations about state regulation of manufacture, a turn and advertising alcoholic, not food alcohol-containing production and not food ethyl spirit approved by the Decree of the President of Byelorussia from September, 9th, 2005 11 by which it is established, that licenses for import not food alcohol-containing production (into which list enter the perfumery-cosmetic goods) stand out according to the legislation on the foreign trade activity on import of the separate goods, providing necessity of presence of such licenses at all subjects of managing, both legal persons, and individual entrepreneurs. That provides equal competitive conditions for all importers of the perfumery-cosmetic goods.
Thus, with a view of simplification of licensing for import of perfumery-cosmetic production by the decision of Ministerial council of Byelorussia September, 27th, 2006 1267 administrative procedures on delivery of the specified licenses are optimized the list of given documents, in particular, is reduced.

In 2007 import of perfumery-cosmetic production are measured to carry out about 40 importers who have received corresponding licenses. The list of operators is finished to data of businessmen on delivery not food alcohol-containing production.

Already today the specified importers actively work with individual entrepreneurs on delivery of perfumery-cosmetic production by it. At separate importers relative density of delivery of the goods to individual businessmen in total amount of deliveries imported production on the consumer market of republic makes 70 and above percent.
All the problem questions connected with realization of the Decree 20 and Decree 760, and also acceptance of measures under their decision, are on the control of the Government.
Alongside with this, we mark, that in republic the precise system of restraint of a unreasonable rise in prices and their ordering in separate branches is developed. Are accepted a number of measures on toughening the control and price control and tariffs for consumer goods and services, non-admission rates of a rise in prices above rates of growth of incomes of the population.

In 2006 tariffs for habitation and municipal services in comparison with 2005 have increased for 14,1 %. As a whole the prices for consumer goods and services have increased for 7,0 %.

According to the Decree of the President of Byelorussia from May, 19th, 1999 285 ” About some measures on stabilization of the prices (tariffs) in Byelorussia ” tariffs for the housing-and-municipal services, rendered to the population, are adjusted by Ministerial council of Byelorussia in coordination with the President of Byelorussia.

Considering significant influence of payments for housing-and-municipal services on a standard of living of the population, tariffs for these services affirm below expenses of the organizations for their rendering. Losses of the organizations from rendering to the population of housing-and-municipal services are compensated due to budgetary grants, incomes of rent and other sources.

The increase in tariffs at housing-and-municipal services is caused by a number of objective factors. First of all, this rise in price got because of limits of republic of energy carriers which occupy significant relative density in expenses for manufacture of housing-and-municipal services (from 28 % – on water supply and water removal, up to 52 % – on a heat supply).

With a view of social protection of the population, since 2004, regulation of tariffs for housing-and-municipal services is directed on non-admission their growth more than 5 US dollars to a year in an equivalent at the rate of National bank. The specified norm means, that monthly payments of the population for housing-and-municipal services in current to year cannot exceed 5 US dollars in relation to December of the last year. For an estimation of change of tariffs for housing-and-municipal services as a whole for a year payments of the population counting upon an average apartment by a total area of 48 square meters with three living are accepted, at normative consumption of services.

We can not agree with your statement, that ” the payment for housing-and-municipal services exceeds wages of many citizens of Belarus and comes nearer to average wages “.

Relative density of payments for housing-and-municipal services in incomes of family constantly decreases. So, if in January, 2004 relative density of payments for housing-and-municipal services in incomes of the family consisting from three person and living in a two-room apartment, averaged on republic of 14,3 %, in January, 2005 – 11,5 %, January, 2006 – 10,2 %, January, 2007 – 9,8 %.

With a view of social protection of the population by the decision of Ministerial council of Byelorussia from April, 24th, 2000 571 it is established, that to citizens for whom the sum of a payment for municipal services under the established specifications of their consumption and for maintenance service of premises, deductions on major overhaul of habitation, within the limits of the established norm of using premises, in view of working privileges, exceeds 25 % of the cumulative income of family, non-cash housing grants are given.

Restrictions on growth of tariffs for the housing-and-municipal services, rendered to the population, within the limits of 5 US dollars, established during last years, despite of decrease in the cost price of services, do not allow to carry out parameters on a level of compensation of expenses the population, established by the Law ” About the budget of Byelorussia ” for the next fiscal year. So, for example, for 2004 the level of compensation by the population, expenses for rendering of housing-and-municipal services on system Minzhilkomhoza has made 45,7 %), at the established parameters at a rate of 60 %, for 2005, accordingly 41,6 % and 57,0 %, for 2006 – 40,5 and 51,7 %.

Alongside with the above-stated, we mark, that the minimal wages (monthly and hour) are applied exclusively in sphere of labor attitudes and provide social protection of workers and are the state minimal social standard in the field of a payment.

The sizes of the minimal wages are established by Ministerial council of Byelorussia annually since January, 1st according to the Law of Byelorussia ” About an establishment and the order of increase of the size of the minimal wages ” and within a year is a subject to indexation by way of, stipulated by the legislation for indexation of incomes of the population in view of inflation.

The size of the minimal wages (monthly and hour), established by the legislation, is obligatory for employers as the lowest border of a payment of workers.

The role of the minimal wages as state guarantee of a payment is restored and its real value is raised: up to 100 % of the budget of a living wage since November, 2004 and is up to 108 % since January, 1st, 2007 now the minimal wages make 179050 rubles.

The social and economic policy sold in republic provides stable functioning pension system.

By the end of 2005 the average pension on age has made 221,4 thousand rubles (103 US dollars in an equivalent). It is the highest level of a provision of pensions across the CIS countries.

For a five-year period pension have increased in eight times, and their real maintenance – more than twice. Rates of growth of incomes of pensioners are comparable to rates of growth of incomes occupied in economy.

In 2006 the parity of monthly average minimal pension on age and the budget of a living wage of the pensioner has made 105,7 %.

And in the further in the field of a provision of pensions tendencies of growth of pension payments will be kept.
During 2006 the sizes of all kinds of the state grants of a studying youth were reconsidered twice and have increased for 12 %.

The operating system of stipendium maintenance allows to pay grants of 90,3 % of students and pupils of the day time form of training of the establishments providing reception of the supreme and average special education.

Deputy Minister A.N.Tur

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Note: Translated by means of machine translation. The original text in Russian is on a site www.levonevsky.org or www.levonevski.net
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