An activist of protest rally of interpreneur unions holds a poster reading: "Bureaucrat ease your hug - you'll strangle me!"
Photo: Pavel Smertin
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Bureaucrats Get More than Racket
National Institute of System Research of Entrepreneurship Problems has attempted to poll small business entrepreneurs about their twilight activities. Those businessmen, who agreed to answer the questions, were not quite honest sometimes, the Institute warned.
If in 2002, the protection racket costs accounted for 4 percent of the revenues, they covered as much as 2.3 percent past year and just 1.8 percent this year, said a few dozens of businessmen, who agreed to take part in the poll of the National Institute of System Research of Entrepreneurship Problems.
As the same time, payment to bureaucrats jumped from 1.9 percent of the revenues in 2005 to 3 percent this year.
The figure could be much higher actually. The survey of Liberal Mission Fund showed that some companies in Moscow transfer up to 60 percent of revenues to bureaucrats, while the average amount is 10 percent. Of it, around 40 percent goes to the tax service, 40 percent is shared by other departments and Interior Ministry gets the remainder.
The burden is the greatest on the small business involved in industrial activities, Liberal Mission signaled. Wholesale companies and servicing firms are the second and the third in the list.
www.kommersant.com
All the Article in Russian as of Oct. 12, 2006
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