Issarov O. B. “Shadow”
Sector in Alcohol Business:
Estimates and Methods of Government Control.
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 ?peaks? of output in the “shadow” sector in the 1990s is due
to the dramatic fall of income of the population which in its turn ?provokes?
the demand on cheap substitutes.
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