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«Shadow» Sector in Alcohol Business: Estimates and Methods of Government Control

русская версия

Опубликовано на портале: 12-11-2004
The article considers the evaluation of illegal production and turnover of alcoholic products in 1990-2000 in Russia. Examining data on production, sales, tax payments and illegal turnover the Author concludes that despite a number of measures undertaken by the government, the scale of illegal production and sales in alcohol business grows and according to preliminary estimates will amount to 33-38% of the total turnover by the end of 2001. Author calls tax policy a powerful means the government to regulate the volume of illegal production and sales of alcoholic production. The reason for ІpeaksІ of output in the «shadow» sector in the 1990s is due to the dramatic fall of income of the population which in its turn ІprovokesІ the demand on cheap substitutes.
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