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Published: April 28th, 2016

Ideology - "Gaidar alternative" proposals - to expand the tax maneuver in the energy sector and to introduce a progressive scale of personal income tax

The new structure of the RF CCI will deal with the development and competitiveness of production. It became headed by Konstantin Babkin - President of the Industrial Union "New Commonwealth" and co-chairman of the Moscow Economic Forum. Today, the correspondent of "BUSINESS Online» visited the first board meeting, where she learned to whom the personal income tax should be raised to 15%, how much the country will receive over 3 years, giving up 1 ruble of income tax today, and why bankers with both hands support the "patriots" .

"UNDERSTANDING WITH THE SPINAL CORD"

How "in the first lines," said vice-president of CCI Dmitry Kurochkin, the Council tasks are monitoring of the Russian economy and the competitiveness of industries analysis in a complex foreign policy situation and making recommendations on state non-commodity business. "The Council was not created from scratch - said Kurochkin. - The participants are those who worked actively in the Chamber of Commerce for many years. Expertise gained is serious. We specifically went to the union of these experts in one committee. This will provide a synergistic effect. " 

Decisions in the Council are taken by majority vote, and the number of participants will not exceed 30 - 35 people. Representatives of the regional Chamber of Commerce are promised to be included at the core of the board. 

Konstantin Babkin, speaking for the first time in his capacity as head of the Council, said that he considers his appointment as a sign of confidence by the Chamber of Commerce to the ideas of economic policy, which he and his colleagues advocates for all those years at the Moscow Economic Forum and "Rosagromash 'Association. "I believe that our Council should bear certain economic ideology - he said bluntly. - We need an alternative to the ideology of Gaidar that Chubais and Yeltsin has pledged in the backbone of the economy."

The presentation of this alternative, which he called "Theses of the sound economic ideology," the chairman began with a story about visiting the Ministry of Economic Development yesterday's board: "Often I hear, that we have enough resources in the country, but there is no development, because there are no simple solutions. Here on the board, even the minister Ulyukayev complained that the industry situation is getting worse, but "there is no simple solution." "So I want to say - there is a simple solution." But under one condition - if it comes with the realization that the core of government policy should be a new industrialization and the development of non-extractive industries. And it must be understood, according to Babkin, with the spinal cord, then it becomes obvious what you need to do.

"THESE IDEAS HAS NOTHING TO DO WITH DEVELOPEMENT OF THE COUNTRY"

Firstl, you need to change the policy of the Central Bank. Today, its priorities - the fight against inflation, the largest collection of taxes from the enterprises, but such that the people are not outraged, and even membership in the WTO, stated that the task - open access competitive producers on the world market. That's just that enough time to adapt to the domestic producers of the WTO requirements were not given. So joining the organization brought problems to the Russian industry .

"These ideas have nothing to do with the development of the country. - Babkin is sure. - Monetary policy must be stimulatory. " To this end, in his opinion, it is necessary to reduce interest rates, which in Russia is much higher than in other countries. In addition, it is necessary to stop all the extra money withdrawal from the country. Currently, total reserves funds of Russian are $ 510 billion. They are taken out of the country and invested in the US and EU bonds. But to combat the current economic crisis only $ 3 billion is allocated.

With respect to banks Babkin offers a policy, the opposite of the current: "We are withdrawing hundreds of licenses and thus sow the unpredictability of the banking market." As a result, the sector is monopolized and coarsens, and the competition falls: Top-5 Russian credit organizations currently owns 54% of Russia's total banking assets. This idea, as they say, had been supported with two-hands by present at the meeting President of Russian Banks Association Garegin Tosunyan. "People in the financial market do not know what to wait tomorrow - whose license will be taken away tomorrow. Even if the organization has problems, it is necessary to deal with the source of problems in the organization, but not with itself ", - he said.

According to Tosunyan, not only to changes in industrial policy matured today, but also the changes in the financial and credit policies. Competition among banks is to provide affordable loans to enterprises, today a high rate is artificially maintained and is the important question that is only a tool to fight inflation is put at the forefront. "The aim should not be that, but the development of the economy. We are putting the cart before the horse and fighting inflation through the compression of the financial market, only to achieve the opposite result," - said the banker. As a result, Tosunyan proposed banking associations and Chamber of Commerce to join in the struggle for a new financial policy, clearly making out the hall for new allies.

"IF A PERSON WILL SEE HOW MUCH HE PAYS TO OFFICIALS, HE WILL CHANGE THE ATTITUDE TOWARDS THEM"

In his report Babkin sounded fiscal reasons. In general, he does not believe the current tax system of Russia is bad, but at the same time says the tax policy is built ideologically wrong. The flexible sectoral approach and investment incentives should be to returned as part of its reform. The sectoral approach is already partially used in Russia in such sectors as IT, agribusiness and the industry of children's goods. But it is necessary to stimulate investment activity is not within the framework of individual projects, and in all sectors of the manufacturing industry. According to calculations sounded at the meeting, refusing 1 ruble of income tax today, you can get up to 1.2 rubles of taxes in 2 - 3 years. 

The flat, but in fact even regressive, taxes rate in Russia was traditionally criticized: social security contributions are reduced for those whose annual income exceeds 796 thousand rubles.. Council members offers to trim social contributions and to make personal income tax rate reasonably progressive. "Of course, it should not wear suffocating nature", - said Babkin. Indeed, it is not at all familiar to many European countries, tax rates for the rich in tens of percent, but to increase the income tax from more than 66.7 thousand rubles per month from 13% to 15%, which is claimed to allow the general release from the personal income tax of persons with low income (less than 10 thousand. rubles per month) and reduce there social payment rate to 25%, which will ultimately have a positive impact on the perception of the Government by the people. In the future, we all are invited to transfer the task of all taxes on the citizens themselves, how the enterprise in the case of deed employees now makes. "The employee himself has to pay taxes, it will raise consciousness in society. If a person will see how much he pays to officials, he will change the attitude towards them ", - said Babkin.

Another unusual offer of a new economic policy is the rejection of image projects. Olympic Games has passed, the FIFA World Cup have to be spend, but then we should stop and instead of "unnecessary luxury" address the pressing problems of the economy.

"WE NEED TO DO THINGS BACKWARDS"

Much attention the Chairman of the Board paid to the need of conducting a reverse tax maneuver in the energy industry. The essence of current tax maneuver is to increase the severance tax with simultaneous reduction of export duties. "Everything is being done so that the raw material was expensive as possible and its exports was as easy as possible. "And I think we should all do the opposite," - said Babkin He proposes to make these exports less profitable, encouraging domestic processing This will reduce the prices of petroleum products in Russia, which, in turn, will support agriculture and industry.

Natalia Shulyar, chairman of the subcommittee on motor fuels of the CCI Committee on Energy Strategy and Energy Development, confirmed the findings of Babkin on tax maneuver: "If in my place here sat the representative of the Ministry of Energy, he would say that all is well. And we have increased exports of crude oil, but the refining fell. " The problem, in her opinion, is the lack of coordination between ministries. Manufacturers of bitumen are underused and how much bitumen is necessary for road construction programs, no one knows. Our country goes to the new fuel standards, but the engines in most cars are old . She cited Tatarstan as an example of a region with a positive experience in the development of oil production and refining. Shulyar offers to invite to the Industrial Development Board Representatives of the Republic for the exchange of experience.

"The path that you are offering, - she concluded, referring to the chairman of the board - is the way of Russia's revival. It requires strength and desire. But the financial unit of the Government do not have neither one nor the other."

"PROTECTIONISM MUST BE REASONABLE"

There were also discussions about reasonable protectionism ... where do we go without it? With limited resources for government support of industry sectors are invited to divide them all to three groups. The first - the sphere of State interests. Here the industry and the production of directly ensuring national security are concentrated: aircraft manufacturing and shipbuilding, aerospace and nuclear industry, defense industry, infrastructure. They continue to receive state aid, taking into account the political interests.

The second category - industry specialization. This is a competitive industry, able both to enter the export markets, and to compete for domestic consumption: chemical industry, agriculture, etc. The state requires concentration on the development of these sectors in the global market.

Finally, so-called cooperation sector. They depend on public subsidies and without substantial assistance is not able to compete with imported products. These segment are parts of the light industry and mechanical engineering. Their further development is seen in the form of co-operation with partners within the EAEC or localization of foreign productions.

Referring to the periodic ideas on how to tariff regulation should stimulate the development of domestic industries, Babkin said that protectionism should be reasonable, and the purpose of customs work should not be thoughtless picking up money in the budget, and the increase in domestic production. Even science will not be able to develope apart from the industrial applications and - even the most ingenious invention will leave in the sand, if there is no plant.

Concluding his speech, the chairman of the new body of the CCI pointed out that the work of the Board sees it as a collective work and a lot of traffic on the creation and promotion of a new ideology of industrial development.

"IF THEY ARE SO FOND OF WESTERN EXPERIENCE, THEY SHOULD AT LEAST TRANSLATE AMERICAN LAWS"

Those experts present at the meeting although were not entirely agree with Babkin on 100%on specific proposals, but the main message received with enthusiasm. "Thank God, the term" industrial policy "is now remembered! The Nation is set up on it. Now we need specific work ", - said Anatoly Goltsev, President of Lipetsk Chamber of Commerce and author of one of the first laws on industrial policy in the region. He called to listen to directors of regional companies and use their experience in the Board.

As always uncompromising has been Chairman of the Supervisory Board of the Institute of Demography, Migration and Regional Development Yuri Krupnov. "There is no political problems in Russia, except the industrial policy. To engage in the industry or not - this is the main real political issue. And how quickly Vladimir Vladimirovich Putin will become aware of the issues affecting the future. Otherwise, we are waiting for a new 91-th year ", - the expert said. Current policy towards industry he described as "anti-Russian" and "antiindustrial". In the USSR, for the first post-war five-year plan 6 thousand Companies has been created, so it is not necessary to refer to the lack of resources, and the Board should be "the headquarters of the industrial world."

Academician Robert Nigmatulin accused many Russian economists in incompetence, an example of which the quarterly financial reports, which he must sign on the settings of the Treasury for its Institute of Russian Academy of Sciences, described: "The Ministry of Finance was headed by Kudrin. What can he develop, if even in a foolish question he has established such rules? "On the topic of industrial development scientist stressed that talk about the development of industry in isolation from solveing payable demand growth is meaningless. So, what about the development of small aircraft and general domestic airlines may be involved when regular doctor, teacher or engineer will not be able to fly on vacation for their income? Today, Russians flights in average 0.6 times per year, whereas in the US the figure per capita is 2.6.

Ekaterina Popova, Deputy Director of "Institute of economy and development of transport", said that system-laws, such as the law on strategic planning, do not work, they are "blocked by our pseudo-liberals." "If they are so fond of the western experience, then they should at least translate western US laws similar", - the expert believes.

«I AM FOR ANY Trouble aimed at changing INDUSTRIAL POLICY IN RUSSIA »

Sergei Serebryakov, Director of OAO "Petersburg Tractor Plant" recalled the fact that Japan took the example of the Soviet planned economy. "They say that the net market - it is a fiction, the question is how to combine the plan and the market, and the rejection of economic planning there consider our very big mistake" - he said. Serebryakov urged to define who should be considered an industrialist: "What is the industry? We call garages the assembly plants. We must agree what consider plants. And support is received by those who do not deserve. "

In general, the topic of state support devided the present. So, Boris Goldstein, deputy general director of JSC "Interskol is sure that we need targeted support to those companies that have shown the effectiveness and contributed to the reconstruction and development of their industries. But Alexander Gorbachev, the first deputy general director of JSC "Factory namedafter Kozitsky ", disagrees:" Targeted support is manually operated. It is necessary to determine the scope and why it gets the mass support. If everyone is "chopped" for the support of his company, someone will get the money, and the country will not get anything from it. " The expert believes that no long-term plans for industrialization and integrated approach is doomed to failure, "But we do not have the State Planning Commission."

The idea of a new Gosplan did not inspire everybody. Chairman of the All-Russian Fleet Support movement Mikhail Nenashev said that revanchism is not needed, and cited the example of Belarus, where there are the five-year period, Gosplan, but wondered what it would be with an economy without Russian support. Nevertheless, he urged those present to do everything to push the steering wheel of the Russian economy of those who ran it the past 20 years: "Enough of them to stand at the helm!"

Talking one of the last Alexei Barbalat , CEO of Noginsk Fuel Equipment Plant, was brief: "Excuse me the expression, but I support any trouble aimed at changing industrial policy in Russia." Otherwise, in his opinion, it is possible to lose time, eventually there will be no one to develop a new industrial policy for.

Source: Business online