President Dmitry Medvedev has ordered an audit of supervisory bodies so that their corrupt officials who try to fleece small businesses could be slapped on the wrists. Prime Minister Vladimir Putin yesterday attended the national forum on the development of small and medium-sized business and promised tax breaks to its participants.
The Prime Minister's liberal attitude stunned Moscow Mayor Yuri Luzhkov, and must have made Finance Minister Alexei Kudrin's hair stand on end. The President's instructions were conveyed by his aide Arkady Dvorkovich. Mr Medvedev had ordered an audit of supervisory agencies for corrupt links between them and the agencies that prepare expert statements and issue permits, such as the Tax Service and the Federal Service for Supervision of Environment, Technology and Nuclear Management (Rostekhnadzor).
"Corrupt relations exist both horizontally and vertically, the head of Delovaya Rossiya, Boris Titov, told Izvestia. It is a well-oiled system which shackles business. But the rules of the game must change in times of crisis, otherwise the economy will collapse."
Mr Dvorkovich recalled the President's appeal not to "turn the life of businessmen into a nightmare", a call that he thinks has been forgotten.
"To preserve and develop the potential of small business, it is necessary to create the most favourable and comfortable environment for entrepreneurs," Mr Putin said and proceeded to back up his words with deeds.
First, he proposed to double the threshold below which the simplified taxation procedure can be applied, i.e. to extend the easy taxation terms to include companies with annual revenues of up to 60 million roubles. Second, he suggested that the payers of a tax on imputed income dispense with cash registers. The cost of maintaining these registers made inroads into the incomes of small businesses, and the Prime Minister's initiative may be a real measure to open oxygen supply to them. The relevant draft law should be adopted by July 1.
Mr Putin also said that requirements to be met in order to bid at tenders and auctions would be cut from 5% to 2% for small businesses. About 15,000 start-up businessmen will receive grants of 300,000 roubles this year. The Prime Minister promised banks more financial assistance, but he warned "the state will link it more closely to loans extended to the real sector of the economy". He promised more money to the regions. In particular, the Government will replenish the regional guarantee funds in support of private entrepreneurs.
Alexandra Beluza