State regulation of tariffs - a brake on the development of competition.

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Topic: PaletteBusiness and crisis
Author of publication: Andrei Smirnov

Posted on: 25/05/2013 13:42

State regulation of tariffs - a brake on the development of competition.

Opinion businessman Alexander Bronstein from Khabarovsk to reflect the views of many of his colleagues.

Entrepreneurs Khabarovsk Krai concluded: with non-interference of the tariff regulation would be not only lower, but comparable to their level in the central regions of the country.

   "We need to understand - what is the competition and what it gives in terms of economic development, - the well-known businessman Alexander Bronstein. It turns out that the competition for developing competition, although this tool to regulate the market and to work in such a way as to achieve the best value for money for goods and services. Competition leads to an increase in consumption and corporate profits. Unfortunately, such an important mechanism for the development of the economy does not work, as there is another way to increase the income of the company - to become a monopoly in the market. Make it hard, because using a sophisticated mechanism - to destroy a competitor or to come to terms with it, as is observed in the Khabarovsk Territory. Income growth is not accompanied by a reduction in costs and an increase in the cost of goods and services. "

   The state does not turn in the direction of those who operates outside the law. The share of entrepreneurs who do not pay taxes too high, so that the economy could become competitive. And if the states interest in the competition, it should pay attention to this fact. It is impossible to name any one sector of the economy where competition would have developed successfully. Even in the trade, where a number of large businesses, the situation is slightly changing as companies merged in the holdings of thousands of business organizations with a common leadership. Positive aspects of competition, if desired, can be found in the exclusive sector of trade in goods. In Khabarovsk, they are high quality at a reasonable price, but only because this area is not affected by government regulation.

   Businesses complain that the entrance to the market is difficult. "The question is - what are plastered so good these markets to seek there? - Asks Alexander Bronstein. Was it an accident, leaving the company to implement their investment projects abroad? There is a high demand and a clear procedure for doing business. The province has already had a case where the company acquired oil in China, and sold them at a higher profit than in the case of buying from a local manufacturer. Climb a foreign investor to understand our rules? Mechanism is used, which allows for the possibility to occupy a dominant position by simultaneous extraction, processing and sale of oil. Abroad, he is banned, because the market there is a huge competition and fuel prices are lower than in Russia. "

   The third point has to do with competition - labor productivity. That the consumer can buy an expensive fuel, it must have a certain level of income, which is the employer. In order to meet the level of consumption of income, they must be backed up by high labor productivity, which in our country is four times lower than in developed countries. Hence, low consumer demand, which prevents the appearance on the market of a large number of companies.

The level of competition is illustrated by the organization of a taxi. There is tough competition, however, among the unregistered businesses. Illegals are united under the "roof" and that is preventing fair competition among taxi associations. In the Khabarovsk Territory introduced the patent system of taxation, which should contribute to the development of competition. After all, it is assumed that the patent will get tens of thousands of citizens. Such laws emerge from the impotence of the state to make the business pay.

Discussion of the bill showed that it is nothing more than another form of simplified taxation system. Charged six percent of the estimated revenue base. Overseas patent is acquired for a nominal fee, which is called duty. The state, relying sum fee is twofold. First - educational, type of paid 500 rubles and work quietly. The second - a punitive, since the opening of the fact of business without payment of duty, the citizen shall be punished by a fine of 500 thousand rubles, and more are unlikely to be able to work safely. The patent system, the value of payments in the hopes that the official will not be in demand. It is known that the actions of the authorities, as well as federal legislation is not stable. The state in the event of a crisis will correct payments, and already registered owner is under strict supervision.

   "They say the competition is interested in someone who eats, not the one who makes, because the union of businessmen invited legislators to intervene in the promotion of small and medium-sized businesses. Lay in the expenditure part of the regional budget to support the amount of a 10 per cent came in the previous year, income from the business, - says Alexander Bronstein. - The main aim of the competition - the increase in the market of economic entities. One manufacturer - the high price, the two - the price is lower and the 20 - item becomes competitive. But the authorities have refused such an initiative with reference to the prohibitions in the Budget Code of the Russian Federation. Maybe so, but if you do not change the law economic development of regions of Russia will be at risk. "

Business believes that the policy is subject to rethink business in municipal government. Creating a municipal or state-owned enterprises hinders the development of competition, because where there is "an administrative cock", economic growth is only visible due to the increase in prices and tariffs.

   Andrei Smirnov, Khabarovsk. 

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