Compared with 2017, the lack of understanding by business of the state economic policy has increased, as explained by Forbes, a partner of Deloitte CIS Gennady Kamyshnikov. “Companies want more certainty and understanding of what steps will be taken by the government. Over the past six months we saw several unexpected initiatives. It is not always bad deals, but they are quite unexpected, which is probably perceived by the business as a destabilizing factor,” believes Kamyshnikov. According to him, such initiatives could include, for example, the “plan Belousov” to seize the companies windfall profits, the initiative to increase the VAT rate and at the same time the new concept on the taxation of self-employed and change the tax jurisdiction of the business.
Industrialists believe that the growth of the industry requires a greater easing of administrative barriers and reduction of geopolitical risks. As the Deloitte survey, compared to 2017 and the increased need of companies for greater transparency and stability of regulatory, tax and economic policy.
Source: Deloitte CIS
It’s not so bad
Pessimism in the industrial sector increased temporarily, the economist of Nordea Bank Tatiana Evdokimova. According to her, the survey took place in summer — a time of maximum uncertainty. “By the time there was a change of government, had announced the VAT increase, was not yet drawn up a budget, and generally not understanding how the may decrees of the President will be funded. All this could have a negative impact on the mood in the industry” — explains the economist. In addition, according to Evdokimova, put pressure on the company in the long term and measures of the Ministry of Finance to improve tax collection.
However, it may increase the fears of the Industrialists and on the background of General deterioration in the economy, says managing partner Expert group Veta Ilya Zharskiy. “Because of the inability to be financed from abroad, against the backdrop of sanctions and due to the relatively high key rate of economic growth is slowing down, which hampers the business. The state really is unpredictable, especially this is evident in the speeches of officials on foreign policy issues. This unpredictability causes a drop in optimism, leading to an outflow of capital, the transfer of funds companies in the protective assets, and after that shrinks the markets in which they operate,” says zarsky. In his view, business has no choice — he will have to continue to adapt to the new reality, how to “correct the situation at the global level is impossible.”