Business in the DPR: Extortions have increased, but there is nothing and nowhere to pay - taxes are paid in kind
Moscow - Kyiv, November 10 (PolitNavigator, Mikhail Stamm) - DPR authorities have already begun registering businessmen and announced the creation of their own tax system. For example, an income tax of 20% has been introduced for entrepreneurs; the population will be taxed only thirteen percent. There will be no VAT in the unrecognized republic. The newly created tax inspectorate will monitor contributions to the DPR. Defaulters will have their business taken away. They will also punish for bribes: corruption, as they say in the DPR, “will be punished according to the laws of war.”
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“It has only gotten worse, even worse than it was during the times of total Ukrainian corruption,” said Novaya Gazeta Vadim, an entrepreneur who owns several stores in Donetsk and the region, rents out retail space. - Because, firstly, all the inspectors and inspectors remained in their places - firemen, sanitary workers, and tax inspectors. Secondly, now they come not once a month, as before, but three times a month. They say that they are tasked with filling the DPR budget. But businessmen simply do not have money. So these inspectors agree to take goods - sausage, alcohol.”
According to Vadim, the revenue of his stores fell ten times compared to what it was before the war. The rental business became completely unprofitable - banks, retail stores, pharmacies - simply closed. And some premises were occupied by representatives of the DPR. “They kicked out a Ukrainian bank, which was a tenant, from my premises and sat there themselves,” says Vadim. “Now I pay for the light and heat they consume.”
The supplier of heat and electricity in most of the territory controlled by the DPR is Rinat Akhmetov’s company DTek. Despite the war, it continues to issue bills for energy to both the population and enterprises. And in case of delays and non-payment, as in previous times, it threatens with shutdowns. But it is not clear how to pay the bill.
“We tried, for example, to pay electricity bills through the Oschadbank branch in Mariupol. You just had to throw money into the account of the regional electrical network, which had an account in Donetsk in the same Oschadbank. So they said that they wouldn’t be able to make the translation: they say, it’s like another state,” says the businessman.
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