January

2000

From February 1 till March 1, 2000 strike of the businessmen

To A. G. Luashenko, the president of the Republic of Belarus.

To the Council of Ministers of the Republic of Belarus.

To the Ministry of business and investments of the Republic of Belarus.

To the chiefs of local bodies of authority.

To the Council on business at the President of the Republic of Belarus.

Mister president, sirs from the parliament, sirs, members of government, sirs, chiefs of local bodies of authority, in connection with the changes in the Law of the Republic of Belarus «About the value added tax» and also with the increase of the minimal wages (MW) we are compelled to address to you with the open letter to state our position to these innovations.

According to sub-item 1.3 of item 1 of article 1 of the new edition of this law, all individual businessmen are considered as the payers of the value added tax (VAT), which actually makes 20 % from the common proceeds. Besides the increase of MW more than on 50 %, that responsively will result in the same increase of the rate of the fixed tax and also certification and hygienic registration of the goods even more increase the tax burden of the businessmen. Considering that the buying power of the basic weight of the population considerably has fallen, incomes of the businessmen everywhere were reduced in some times, and already now many of them are on the verge of ruin.

Thus, from 2 of January, 2000 there is a new situation which puts under doubt an opportunity of the further activity of the businessmen engaged in trade-purchasing activity. About 120.000 businessmen expect the beginning of the action of this law with the fear, they do not understand that the government want from them? The beginning of this law makes          all trade-purchasing activity unprofitable. To get profit the businessmen will be compelled to be engaged in the concealment of the income or proceeds or they are threatened by the gradual ruin and unemployment.

In due time the representatives of the free trade union of the businessmen offered to be consulted by the representatives of the free trade union of the businessmen when the normative acts concerning the businessman’s activity or changes in it are prepared not to create disputed situations. However in the next time it was not made and in next time the businessmen have been put before necessity to realise all-republican action of the protest which possible will carry and political character.

In due time representatives of the free trade union of the businessmen offered on the example of other countries to create the really simplified system of the taxation which would allow to increase the receipts in the budget and would remove the intensity in the society, but probably it was no the intention of the appropriate officials, a cart is nowadays there.

On the basis of the above-said we offer:

1.      to suspend changes in the Law of the Republic of Belarus «About the value added tax», in particular sub-item 1.3 of item 1 of an article 1 of new edition of the above mentioned law namely, to exclude the individual businessmen, paying the fixed rate of the tax, from the list of the payers of the VAT.

2.      To advice the interested parts to develop the mutually acceptable decision of a becoming ripe disputed situation. It is accepted at the extended meeting of the representatives of the businessman’s structures of the Republic of Belarus on January 10, 2000 in Minsk.

The answer is not got till now, the VAT for the businessmen from words of the chiefs of the tax inspection (on 21.01.2000) works.

To attention of the heads of the businessmen’s structures and organisations, businessmen.

For more operative information about the events occurring in Belarus, for the getting of the electronic version of the bulletin "Businessman", trade-union information it is necessary to inform all of you about the addresses of e-mail on which we shall send this free-of-charge information. On these sources the delivery of the laws and normative acts (electronic versions) of Belarus and other states is also possible.

The electronic mail can be received on your personal computer (Yours or Your acquaintances), or on the subscription electronic box in your branch of the organisation BELPAK.

The offers on the subscription should be sent to: E-mail: levonevski@mail.ru or Å-mail: grodno_business@mail.ru

Dear businessmen.

According to the decision of the all-republican meeting of the heads of the businessman’s structures and organisations from 1.02.2000 the strike of the businessmen to stop the payment of the taxes and other payments in the budget is announced. The business of the conscience of each businessman is to support this strike. The forms of the appropriate applications will be given out to the chiefs of the trade unions which are included into the strike committee. Be afraid of possible pseudo-leaders and provocateurs. We remind, that the trade union "Sadruzhnosts" is the state trade union and is removed from the strike committee. We can achieve something only by co-ordinated actions. Any applications and actions connected with the strikes of the businessmen not co-ordinated with the Free trade union of the businessmen and the Strike Committee will be regarded as provocation with all following consequences for provocateurs.

Our requirements:

1)     Cancellation (simplification) of the obligatory book keeping for the persons who have paid fixed rate of the taxes

2)     To announce "moratorium" on the increase of the rates of the fixed tax, the rates of the fixed tax should not exceed sizes established in December, 1999.

3)     Cancellation of the value added tax (VAT) for the persons, paying the fixed rates of the tax

4)     Cancellation of obligatory certification and hygienic registration of the goods which are sold in the markets with the obligatory mark "the goods are not certificated in RB". To recognise the certificates of other countries.

5)     Cancellation of the Decrees of A. Lukashenko #14 and #40.

6)     To stop the extortion of bribes on the part of militia, tax controllers and administrations of the markets, workers of executive committees.

7)     To stop bribes and extortion on the part of the government officials when the goods are transported from Russia into Belarus.

The chairman of the meeting                                 Valery Levonevsky

0152 (31-30-62) Grodno, pager tel. (0152) 73-00-00 subscriber 95200

Information on tel. 84-31-82, 84-59-94f, (Minsk) Zakharova 24, 27-57-78 (Minsk, Freedom square 23)

To the attention of the heads of the businessman’s structures and organisations, trade unions, public organisations and citizens.

31.01.2000 at 13.00 in Minsk (Bangalor square) the meeting to protect economic and other rights of the citizens will be held. The sanction to meeting is given by the Minsk municipal executive committee (#3-150 from 19.01.2000).

The meeting will be carried out on the initiative of the businessmen of the Republic of Belarus, by the Free Trade union Belorussky and by the Belorussian Organisation of the Working Women.

The meeting is especially peaceful. The performance of the musicians is expected. The souvenirs, pens, balls, sweet, ice-cream for children, tickets into the cinema on children's films etc will be given out. A. Lukashenko, the Chairman of the Council of Ministers and all his study, the leaders of the National Assembly are invited.

This chief-asters will be given a unique opportunity to tell a fairy tale to practically hungry children, their mothers, to the pensioners as they live well, and to tell a fairy tale to businessmen "About the development of the business in the Republic of Belarus".

All who want to take part in the meeting, render financial support can address to: (Grodno) tel. 0152 (31-30-62), pager (0152) 73-00-00 subscriber 95200, E-mail: grodno_business@mail.ru

(Minsk) 227-57-78, 284-31-82 (ask Valery Levonevsky),

E-mail: levonevski@mail.ru.

The representatives of foreign embassies and Mass media (MM) are also invited to this meeting.

Again strike? Why?

In the next which time the government of Belarus drives the businessmen into a corner. In connection with the changes in the Law of the Republic of Belarus «About the value added tax» there is a situation at which the businessmen engaged in the trade should turn off the activity. To make it clear, we will address directly to "the deserved" strike-breaker who during all our previous actions of the protest made everything to break them. Probably you recognise him, probably not, but we shall name him Vasya and we shall try to talk with him. If this Vasya recognises himself and disagrees with something, we ask him to write the opinion on this question and we shall publish it in our bulletin. We are open for the discussion with any sensible man.

So, you, Vasya, bought goods in Turkey, it is no matter how much it costs and you import him in Belarus, we shall think that it is jeans. On border the custom officer will estimate them it there will be customs cost of the goods. For example, the jeans will be estimated in 10 dollars. You, Vasya, pay the duty on jeans 5 dollars and value added tax (VAT). In the law it is told that the base to pay the VAT for the goods imported in Belarus is the sum of the custom cost (10 dollars) and customs (5 dollars), the total sum is 15 dollars and this is the base to pay the tax. The VAT will make 3 dollars, so you, Vasya, must be pay for these jeans the duty of 5 dollars plus the VAT of 3 dollars on the border, the total sum is 8 dollars. And what you paid for them when you had bought them is your problems. After you has sold them, you, Vasya, will be obliged to pay the VAT once again, it will be already 20 % from that sum for which you have sold them. To you will count up your monthly proceeds, and Vasiliy, you should be ready to pay 20 % from the monthly proceeds. In the law is told that the deductions from the sum of the VAT calculated can be made after the realisation of the goods, but it is only theoretically as for such deduction the primary documents, way-bills, payment documents etc. are necessary, and they, as you understand, won’t be given to you by anybody in Turkey. If you will write out false way-bills it is even worse. If we estimate for how many they can be sold and what you get after the payment of the VAT, fixed tax, certification, payment for a place and charges on trips to buy goods, you, Vasya, will get a hole from a bagel!

Let's assume that you, Vasya, have decided to bring jeans from Moscow then on the border you will be obliged to pay the VAT that it is 20 % from the custom cost, i.e. 2 dollars. And then after the sale - 20 % from the sum of the monthly proceeds or revolution.

Now, if you, Vasya, have decided simply sell the rests of the goods, then you again will be calculated your monthly proceeds and "get"-pay 20 % from these proceeds, other payments and charges, as you understand, will be cancelled by nobody.

There "above" they think that you, Vasily, wind a great plenty of interests and live at the expense of the labour people. Some officials of high rank tell "fairy tales" how these "speculators", i.e. you and me, buy stockings for 1 million and sell them for 6 millions. So they, Vasya, represent our life. But we know that if any goods on which it is really possible to wind 100 % will appear these goods will at once be brought by others and the price will fall the market and competition will make its business. We also know that the people of Belarus are poor and almost all money they spend to feed a family, to sell the goods is more difficult. On the average, the goods are sold on 20 -30 % more expensively than it was bought but if we take into account that the part of the goods "hangs", i.e. it is not sold (sizes are too small or too big, spoilt things, unsuccessful colouring etc.) and also if we take into account all charges the real profit will make no more than 10 %.

It turns out, Vasily, that there is no sense to trade though as you twist you will not get any profit. If it was possible to find work, to get good salary, then you, Vasya, would throw this trade and would work with the machine tool. But, first of all, where is this work? And, secondly, even if you find this work there is such salary that you won’t be able to live on it. You, Vasily, are driven into a corner. There are questions: «How should we live further?», «How should we support family?». There are three ways out: the first one is to throw all and to go abroad, but how, Vasya, can we all leave the country? The second one is to hide the circulation, to write off nothing and that is all. And then the circulation and the VAT are small, for example, you have written off 50 millions for month, from 50 millions the VAT will make 10 millions, it is possible to live. But you, Vasily, will be worn out by the fines from "controllers", they will rise above soul and will "graze". You didn’t write off the fine, one time, second, and then and the criminal case. As we know, in a near future they increase these penalties in 10 times, for today, it is from 44 up to 110 millions. And as there are a lot of "controllers", it is possible to say, Vasily, that is “the end”. Recently one official of high rank said: «To the State is unprofitable to maintain businessmen as the keeping of one businessman costs to the state approximately 50 millions, and he pays 25 millions on the average as the tax». Understood, Vasya, the state wastes 50 millions to fine – so you are "unprofitable"! This money is spent to support the controllers who spy upon you, recalculate your goods, track down where your car is, aspire to catch you for dollars, fine you, in the general these people have something to do all the time. In there time the free trade union of the businessmen offered to simplify the taxation. On the example of other countries it was offered: «You paid the fixed tax and trade quietly, and nobody will touch you». Then the whole army of the controllers will be not necessary, then our taxes would be sent to the pensioners and teachers, instead of on the keeping of the machinery of the officials. But if they who are “above” thought as we did, but there everything is done on the contrary, the army of the controllers is constantly increased. So, Vasily, they will not allow us to work and we have only one way out - to struggle for the rights! The actions of the protest, meetings, strike, pickets! January 10 at the meeting of the representatives of the businessmen from all regions of Belarus the decision about the beginning of the action of the protest was accepted, i.e. about the finishing of work since February 1, 2000. On behalf of all businessmen at this meeting appeal to reconsider dragon’s change in the law on the VAT to all imperious and legislative structures was accepted. The representatives nominated at this meeting for 3 days have tried to knock until the heads of the authority, have gone from study to study, have given the text of the appeal and tried to state to the officials "their sore". Also what do you think, Vasily? Did somebody begin to talk with them? No! For example, A. Sazonov, our minister of business referred to such " tense" schedule of work that he can not talk with them up to the end of year. Madam T. Bykova with whom it was possible earlier to talk to said: «Enter the name in the reception list, may be I shall talk to you», it was clear that she simply was afraid to talk to the representatives of the businessmen. Understand, Vasily, they all are too busy! We all are people and it is possible to understand that Sazonov has a warm study, quite good salary, and suddenly he "will say" something wrong and he will lose his this post. And he sits «having pressed his ears», shakes and does not want to solve anything. And not only Sazonov is in such condition and all officials of Belarus, all wee frightened by “Grigorich”. Yes, they can be understood! And who will understand 130 thousand businessmen, who lose the means to live? Vasya, do you understood what they want to do with you?

Now, Vasily, they want «to hang noodles on your ears», some mass media, in particular, newspaper "The Republic" and TV inform that the question about the cancellation of the VAT for the individual businessmen is considered. They promised to cancel the VAT on January 5, 2000. These hearings are distributed by the state trade unions which are controlled by the state and provocateurs. It is possible to consider the law for a year and two and in February, Vasily, you should already pay 20 % from the January proceeds. The law was nobody cancelled and the people who have no any power in this state speak about any intentions of authorities. They, Vasily, have one purpose to come you down to make you pay taxes and they will "undress" you. Don’t work? Certainly it is losses for you and me, Vasily. Vasya, you see, if we do not do anything they select everything, to this all business goes! On January 31 in Minsk at 13.00 at Bangalor square the meeting to protect our economic interests will be held and if 130 thousand businessmen take part in it, probably something would change. So, Vasya, throw everything, but at the meeting you should be present! Then your son will ask: “What have you, father, made to live well?” What will you answer him? How will you look to the eyes of hungry children? Only together we can do something. And if it is no you, then who?

The special correspondent of the bulletin "Businessman"                  

Sergei Rukomoinikov.