Tadić urges more family-owned businesses

Bravo!

Now reform the administration so it's easy to set up companies and reform taxation so that it's tied only to income and not stupid things like "tax on fulfilling the obligation of having your company name on your mailbox". Companies in Serbia have tax obligations for merely existing. This is as outrageous as it is nonsensical. Also, I've recently heard from someone that VAT liability to the state starts when you acquire inventory. ie, you owe the state 18% of everything in your warehouse, before you've sold a thing. outrageous.

Next, take Serbia's payment system out of the dark ages. No more lining up at the post office with pieces of paper in your hand to pay your bills. How can mom-and-pop enterprises succeed today if online shopping means you print out a form and take it to the post-office??

It's great to say "start businesses", but you need to create the conditions where it's easy for people. This is the main, if not only job of governments - to create an environment where people are empowered to pursue their dreams

I agree with your comment Danilo. But platitudes from Tadic are not enough. He has to provide incentives to small businesses, small to medium sized businesses are the engine of the economy but they face all kinds of difficulties and do not have the advantages of large businesses with 'creative' accountancy, offshore networks of business and the ability to bribe political parties.

That last fact is probably the main reason politicians tend to forget smaller businesses, unless its election time.

You have destroyed Serbian families with your politics Mr Tadic…now you tell us to open small businesses..Wuth what??...You took everything from us !!!??

In all honesty, he should add that working for yourself means working 60+ hours a week in order to avoid working 40 for somebody else. Is Serbia a culture where people consider this a fair trade?

The state may look at it as getting people to "take responsibility for themselves" (thus letting the state off the hook), but entrepreneurs are more apt to see going into business as a chance to create something, if only a fortune. From Danilo's comment, it sounds like the state currently routinely kills the geese that are supposed to lay the golden eggs while they're still goslings.

It's great to say "start businesses", but you need to create the conditions where it's easy for people. This is the main, if not only job of governments - to create an environment where people are empowered to pursue their dreams
(Danilo, 11 March 2012 16:39)

Serbia - as bad as it is - here is better off than Hungary, which is in E.U. Hungarian tax system is regarded as government's war looting the own citizens. Hungarians regard themself being technically at war with the governments, not just the current one and the duty of each family head is to protect the family from the looting.

Let's start with 27% sales tax / VAT and "car registration tax" they try to squeeze out of the newcomers with their pre-existing cars. That's the start, the list is very long, this is economic death.

He has to provide incentives to small businesses, small to medium sized businesses are the engine of the economy but they face all kinds of difficulties and do not have the advantages of large businesses with 'creative' accountancy, offshore networks of business and the ability to bribe political parties.
(bganon, 11 March 2012 22:47)

No better way to sum it up as this. Not just in Serbia but in many countries.

Haven't they been saying this stuff for about ten years???

It's easier said than done. At any rate, goodluck competing against mechanized and subsidized producers from western europe.

Ataman, the member states of the EU have (still) their own tax systems. There is nobody to blame but the Hungarian government for complicated bureaucracy.

Although your Hungarians seem to be taking it to new levels of ridiculousness, I have to admit.
(Amer, 12 March 2012 11:03)

That they are champions. I am not a fan of large, fat pick up trucks but probably North Korea is the other place where you just can't buy your own pick up truck and ride it as much as you like. I told ya, the mentality is: "government's job is to loot what they can, our job is to protect ourself and cheat where we can"

@Observer: of course, the number one to blame are the lawmakers and number two to blame is the herd of sheep who elected them and does very little after it becomes obvious, the elected ones are just an other set of criminals. In 2006 all they could produce were stupid riots and half of the city being thorn down.

There is something wrong with Hungarians in general, the champions of victimhood on one side, on the other side if they immigrate somewhere the first what they assume is that the locals want to rip them off, so they rip off the locals and break the law "as prevention". All that paired with the sweet "we are the best" mentality like they did on Otok Vir.

Moved in -> rented the home "black" to Germans not paying boravista taksa -> Croatians got upset -> Hungarians told, all who lives there are the relatives (yes, all the Germans and Dutch, all are the relatives, changing every week, of course) -> Croatians got even more upset -> The homes were built illegally -> So the judge had the option to rule to demolish them -> Judge sent a notice in CROATIAN that unless you appeal (in CROATIAN!) your home will be torn down -> Hungarians say "WTF, stupid Croats, they should write in Hungarian" -> Time passes, 'dozer comes, Hungarians: "These Croats hate Hungarians!!!"

Or like my insurance agent told me: "Ukrainians and Serbs hate Hungarians"... because:
"In Ukraina I had no first aid box in the car, they fined me. And in Serbia I passed slow trucks with only twice the permitted speed in the tunnel on my way to Sofia and at the end of the tunnel the MUP fined me 5000 Dinars"

Yeah, what a horror - you break a REASONABLE law by stupid greed (boravista taksa is well under 5 Euro/day, you rent home for fifty, what's your problem?), dumbness or just for sake of fun to break it, than you get problems "because you are Hungarian".

Sorry for off-top just wanted to tell that the people are by no mean innocent either. And once they go somewhere, be it Ukraine or USA they realize, the relationship between the citizens and the state is more balanced and usually there is much less need to cheat. What was first, egg or the chicken do not know, but now half of Europe is complaining, something between Carpathians is really broken. Interestingly, most Vojvodinians do the same if they move to "mother ship", so it's by no means "ethnic", just a by-product of last decades.

Tadic is absolutely correct to promote small businesses, which of course often turn into stable big businesses. However, his encouragement will remain no more than political rhetoric until the state creates an environment conducive to small and large enterprises. Business law must be rewritten to be clear, firm and simple – most importantly effective and in line with accepted Western standards. Taxes are already very favorable and must stay that way. VATs must be abolished. Nothing kills a small business quicker than pointless taxes on idle assets. Access to capital, from private and state supported lenders, is essential. Crime and graft, both of which suck the life blood out of small investors, must be eliminated immediately and permanently; and brutally if that is the only option. Infrastructure is on its way back and Serbia enjoys an almost ideal geographic location for development of export oriented finishing factories. It is has gone through hell to get here, but now is regionally unique in that it has no political master and enjoys cordial, professional relations with BRICS and the West.

This is not an easy task. But of all the former Yugo other Balkan states, Serbia is in the best position to achieve entrepreneurial greatness. Serbs in general are an intelligent, driven and motivated people. If the state provides the right environment there is no limit to what they can accomplish. As numerous international surveys and other evidence indicate, they are among the most fun loving and welcoming people on the globe. Once economic growth heads in the right direction, the country will again become the main regional cog and business destination.

From Danilo's comment, it sounds like the state currently routinely kills the geese that are supposed to lay the golden eggs while they're still goslings.
(Amer, 11 March 2012 21:09)

This is the common curse in East Europe. Imagine, in the States someone would create a law that you maynot drive your own pick-up truck unless you prepare a host of documents. And you definitely maynot drive your own pick-up truck for leisure. That's the case in Hungary. The reason: in order for small business to be competitive with the surrounding countries there is no registration tax in Hungary on the pick-up trucks. But than they create a set of laws which makes driving a pick up truck legally a pain in the rear, you have to have a gazillion of documents about the load of the pick up truck, route papers and such.

The entire thing is pretty bizarre - on one hand they practically give out Hungarian citizenships, on the other if you really want to move in (or you are unfortunate to marry any Hungarian resident) - you have to pay an astronomic fee for the first registration of your already existing car, often more than the car's value. It is not a duty, it is a unique rip-off.

Than every business has to pay some other astronomic amount each month for... a Social Security which was practically abolished by Orbán last year and all the saved money is already looted. If one complains about Serbia or any place in Balkan keep in mind, the biggest Balkan is in the middle of Carpathian Basin and there is no end of the tunnel in sight. The only proper solution is to go into "black" and "cash" economy, that's what people do. Some don't have even medical insurance, good choice: it's worth nothing and regardless how good it is, you have to pay doctors big money under the table regardless of the insurance. If you have none or a foreign one that everything is either official or makes no difference.

But the government here does not mind to put the little cuddly sweet Jesus in your bedroom, Ms. Rózsa Hoffman wants Jesus watch you having sex and approve it only if you are married, what a Christian and democratic minister.

But the history of sex is not even 7000 year old, little cuddly Jesus made the Planet Earth only 6000-something years ago. Even the Hungarian branch of SPC laughs their butt off but Aunt Rózsi is medieval and more christian than Pope. Of course she was an MSZMP functionary during the communism, what a great christian.

http://en.wikipedia.org/wiki/Rozsa_Hoffmann

Such carrier is very typical for the average Hungarian politician,

http://en.wikipedia.org/wiki/Leech

so there we stuck, there was no real system change just the leech changed the color, it's still the same leech.

@(Ataman, 12 March 2012 09:26)

Come home, Ataman, all is forgiven. More to the point, the economy is beginning to pick up.

On the other hand, the I.R.S. also has its little ways. For example, if a doctor has an office at home (for office work, not seeing patients) and he has a little refrigerator for samples in the office, God help him if an inspector comes and finds a bottle of beer in it. (Or, more likely, a photograph in documentation submitted for declaring the space a home office shows one.) No write-off, no deduction from income. Tax-persons have not had a reputation for sympathetic interpretations since at least the time of the Old Testament. Although your Hungarians seem to be taking it to new levels of ridiculousness, I have to admit.

But the history of sex is not even 7000 year old, little cuddly Jesus made the Planet Earth only 6000-something years ago. Even the Hungarian branch of SPC laughs their butt off but Aunt Rózsi is medieval and more christian than Pope. Of course she was an MSZMP functionary during the communism, what a great christian.

[link]

Such carrier is very typical for the average Hungarian politician,

[link]

so there we stuck, there was no real system change just the leech changed the color, it's still the same leech.
(Ataman, 12 March 2012 09:26)

Hoffmanova the railwaywoman put in the wrong position.
http://www.youtube.com/watch?v=C7xkBJ5b7LM&feature=related
Was ist vasutas?The hungarian state pays for it?My dear Rose will embrace me.La LA LA.

You have destroyed Serbian families with your politics Mr Tadic…now you tell us to open small businesses..Wuth what??...You took everything from us !!!??

Bravo!

Now reform the administration so it's easy to set up companies and reform taxation so that it's tied only to income and not stupid things like "tax on fulfilling the obligation of having your company name on your mailbox". Companies in Serbia have tax obligations for merely existing. This is as outrageous as it is nonsensical. Also, I've recently heard from someone that VAT liability to the state starts when you acquire inventory. ie, you owe the state 18% of everything in your warehouse, before you've sold a thing. outrageous.

Next, take Serbia's payment system out of the dark ages. No more lining up at the post office with pieces of paper in your hand to pay your bills. How can mom-and-pop enterprises succeed today if online shopping means you print out a form and take it to the post-office??

It's great to say "start businesses", but you need to create the conditions where it's easy for people. This is the main, if not only job of governments - to create an environment where people are empowered to pursue their dreams

In all honesty, he should add that working for yourself means working 60+ hours a week in order to avoid working 40 for somebody else. Is Serbia a culture where people consider this a fair trade?

The state may look at it as getting people to "take responsibility for themselves" (thus letting the state off the hook), but entrepreneurs are more apt to see going into business as a chance to create something, if only a fortune. From Danilo's comment, it sounds like the state currently routinely kills the geese that are supposed to lay the golden eggs while they're still goslings.

I agree with your comment Danilo. But platitudes from Tadic are not enough. He has to provide incentives to small businesses, small to medium sized businesses are the engine of the economy but they face all kinds of difficulties and do not have the advantages of large businesses with 'creative' accountancy, offshore networks of business and the ability to bribe political parties.

That last fact is probably the main reason politicians tend to forget smaller businesses, unless its election time.

It's great to say "start businesses", but you need to create the conditions where it's easy for people. This is the main, if not only job of governments - to create an environment where people are empowered to pursue their dreams
(Danilo, 11 March 2012 16:39)

Serbia - as bad as it is - here is better off than Hungary, which is in E.U. Hungarian tax system is regarded as government's war looting the own citizens. Hungarians regard themself being technically at war with the governments, not just the current one and the duty of each family head is to protect the family from the looting.

Let's start with 27% sales tax / VAT and "car registration tax" they try to squeeze out of the newcomers with their pre-existing cars. That's the start, the list is very long, this is economic death.

Haven't they been saying this stuff for about ten years???

It's easier said than done. At any rate, goodluck competing against mechanized and subsidized producers from western europe.

He has to provide incentives to small businesses, small to medium sized businesses are the engine of the economy but they face all kinds of difficulties and do not have the advantages of large businesses with 'creative' accountancy, offshore networks of business and the ability to bribe political parties.
(bganon, 11 March 2012 22:47)

No better way to sum it up as this. Not just in Serbia but in many countries.

From Danilo's comment, it sounds like the state currently routinely kills the geese that are supposed to lay the golden eggs while they're still goslings.
(Amer, 11 March 2012 21:09)

This is the common curse in East Europe. Imagine, in the States someone would create a law that you maynot drive your own pick-up truck unless you prepare a host of documents. And you definitely maynot drive your own pick-up truck for leisure. That's the case in Hungary. The reason: in order for small business to be competitive with the surrounding countries there is no registration tax in Hungary on the pick-up trucks. But than they create a set of laws which makes driving a pick up truck legally a pain in the rear, you have to have a gazillion of documents about the load of the pick up truck, route papers and such.

The entire thing is pretty bizarre - on one hand they practically give out Hungarian citizenships, on the other if you really want to move in (or you are unfortunate to marry any Hungarian resident) - you have to pay an astronomic fee for the first registration of your already existing car, often more than the car's value. It is not a duty, it is a unique rip-off.

Than every business has to pay some other astronomic amount each month for... a Social Security which was practically abolished by Orbán last year and all the saved money is already looted. If one complains about Serbia or any place in Balkan keep in mind, the biggest Balkan is in the middle of Carpathian Basin and there is no end of the tunnel in sight. The only proper solution is to go into "black" and "cash" economy, that's what people do. Some don't have even medical insurance, good choice: it's worth nothing and regardless how good it is, you have to pay doctors big money under the table regardless of the insurance. If you have none or a foreign one that everything is either official or makes no difference.

But the government here does not mind to put the little cuddly sweet Jesus in your bedroom, Ms. Rózsa Hoffman wants Jesus watch you having sex and approve it only if you are married, what a Christian and democratic minister.

But the history of sex is not even 7000 year old, little cuddly Jesus made the Planet Earth only 6000-something years ago. Even the Hungarian branch of SPC laughs their butt off but Aunt Rózsi is medieval and more christian than Pope. Of course she was an MSZMP functionary during the communism, what a great christian.

http://en.wikipedia.org/wiki/Rozsa_Hoffmann

Such carrier is very typical for the average Hungarian politician,

http://en.wikipedia.org/wiki/Leech

so there we stuck, there was no real system change just the leech changed the color, it's still the same leech.

@(Ataman, 12 March 2012 09:26)

Come home, Ataman, all is forgiven. More to the point, the economy is beginning to pick up.

On the other hand, the I.R.S. also has its little ways. For example, if a doctor has an office at home (for office work, not seeing patients) and he has a little refrigerator for samples in the office, God help him if an inspector comes and finds a bottle of beer in it. (Or, more likely, a photograph in documentation submitted for declaring the space a home office shows one.) No write-off, no deduction from income. Tax-persons have not had a reputation for sympathetic interpretations since at least the time of the Old Testament. Although your Hungarians seem to be taking it to new levels of ridiculousness, I have to admit.

Ataman, the member states of the EU have (still) their own tax systems. There is nobody to blame but the Hungarian government for complicated bureaucracy.

Although your Hungarians seem to be taking it to new levels of ridiculousness, I have to admit.
(Amer, 12 March 2012 11:03)

That they are champions. I am not a fan of large, fat pick up trucks but probably North Korea is the other place where you just can't buy your own pick up truck and ride it as much as you like. I told ya, the mentality is: "government's job is to loot what they can, our job is to protect ourself and cheat where we can"

@Observer: of course, the number one to blame are the lawmakers and number two to blame is the herd of sheep who elected them and does very little after it becomes obvious, the elected ones are just an other set of criminals. In 2006 all they could produce were stupid riots and half of the city being thorn down.

There is something wrong with Hungarians in general, the champions of victimhood on one side, on the other side if they immigrate somewhere the first what they assume is that the locals want to rip them off, so they rip off the locals and break the law "as prevention". All that paired with the sweet "we are the best" mentality like they did on Otok Vir.

Moved in -> rented the home "black" to Germans not paying boravista taksa -> Croatians got upset -> Hungarians told, all who lives there are the relatives (yes, all the Germans and Dutch, all are the relatives, changing every week, of course) -> Croatians got even more upset -> The homes were built illegally -> So the judge had the option to rule to demolish them -> Judge sent a notice in CROATIAN that unless you appeal (in CROATIAN!) your home will be torn down -> Hungarians say "WTF, stupid Croats, they should write in Hungarian" -> Time passes, 'dozer comes, Hungarians: "These Croats hate Hungarians!!!"

Or like my insurance agent told me: "Ukrainians and Serbs hate Hungarians"... because:
"In Ukraina I had no first aid box in the car, they fined me. And in Serbia I passed slow trucks with only twice the permitted speed in the tunnel on my way to Sofia and at the end of the tunnel the MUP fined me 5000 Dinars"

Yeah, what a horror - you break a REASONABLE law by stupid greed (boravista taksa is well under 5 Euro/day, you rent home for fifty, what's your problem?), dumbness or just for sake of fun to break it, than you get problems "because you are Hungarian".

Sorry for off-top just wanted to tell that the people are by no mean innocent either. And once they go somewhere, be it Ukraine or USA they realize, the relationship between the citizens and the state is more balanced and usually there is much less need to cheat. What was first, egg or the chicken do not know, but now half of Europe is complaining, something between Carpathians is really broken. Interestingly, most Vojvodinians do the same if they move to "mother ship", so it's by no means "ethnic", just a by-product of last decades.

But the history of sex is not even 7000 year old, little cuddly Jesus made the Planet Earth only 6000-something years ago. Even the Hungarian branch of SPC laughs their butt off but Aunt Rózsi is medieval and more christian than Pope. Of course she was an MSZMP functionary during the communism, what a great christian.

[link]

Such carrier is very typical for the average Hungarian politician,

[link]

so there we stuck, there was no real system change just the leech changed the color, it's still the same leech.
(Ataman, 12 March 2012 09:26)

Hoffmanova the railwaywoman put in the wrong position.
http://www.youtube.com/watch?v=C7xkBJ5b7LM&feature=related
Was ist vasutas?The hungarian state pays for it?My dear Rose will embrace me.La LA LA.

Tadic is absolutely correct to promote small businesses, which of course often turn into stable big businesses. However, his encouragement will remain no more than political rhetoric until the state creates an environment conducive to small and large enterprises. Business law must be rewritten to be clear, firm and simple – most importantly effective and in line with accepted Western standards. Taxes are already very favorable and must stay that way. VATs must be abolished. Nothing kills a small business quicker than pointless taxes on idle assets. Access to capital, from private and state supported lenders, is essential. Crime and graft, both of which suck the life blood out of small investors, must be eliminated immediately and permanently; and brutally if that is the only option. Infrastructure is on its way back and Serbia enjoys an almost ideal geographic location for development of export oriented finishing factories. It is has gone through hell to get here, but now is regionally unique in that it has no political master and enjoys cordial, professional relations with BRICS and the West.

This is not an easy task. But of all the former Yugo other Balkan states, Serbia is in the best position to achieve entrepreneurial greatness. Serbs in general are an intelligent, driven and motivated people. If the state provides the right environment there is no limit to what they can accomplish. As numerous international surveys and other evidence indicate, they are among the most fun loving and welcoming people on the globe. Once economic growth heads in the right direction, the country will again become the main regional cog and business destination.