Complaints about insufficient tax collection in Dagestan have been misdirected

A member of the Dagestan parliament, who, according to Telegram channels, was criticized by the head of the republic for poor tax collection, bears no responsibility for the widespread corruption in the republic. Small entrepreneurs, who will be subject to further audits, will also fail to generate sufficient revenue.

Dagestan Head Sergei Melikov spoke about tax issues at a meeting of the task force on March 3. In 2025, the Ministry of Internal Affairs registered approximately 50,000 cases of illegal business activity: businessmen operated without official registration or the necessary permits, the Telegram channel "Ask Rasul" reported today.

According to the head of the region, such widespread violations are due to weak oversight by local and regional authorities, as well as the lack of clear procedures for registering entrepreneurs with tax authorities. As a result, many businessmen hide their income and don't pay taxes.

The Telegram channel quotes Melikov, addressing Sefer Aliyev, Chairman of the Committee on Economic Policy and Entrepreneurship of the People's Assembly of the Republic of Dagestan. "We have an increase in tax revenues from honest businesses. But who will deal with the dishonest ones? All this needs to stop. You should resign, because you've been sitting in the People's Assembly for five years without any effect on the situation. "I'm telling you this, Sefer, as a leader—to a leader and as a people's representative who, apparently, has disappointed his constituents and, accordingly, the republic's leadership," said Sergei Melikov.

At meetings on improving tax collection, small businesses are regularly criticized, reports the Telegram channel.

"In difficult economic conditions—first after the pandemic, then during the period of sanctions—entrepreneurs selling carrots and parsley are being criticized for underpaying a notional two thousand rubles. With a 1% or 5% tax rate under the simplified tax system—how much do they owe?—these people are already barely making ends meet. And the fact that land and property taxes have been unpaid for over twenty years in the republic, on properties that are "cunningly" not registered with the cadastral register and are not included in the AIS-3 tax service database, seems to be of no concern to anyone. Of course, it is. Only, it seems, not in the intended sense. After all, if information about thousands of properties in Makhachkala and throughout the republic ends up in the database, the bills will have to be paid. But as it is, they can safely build a house by the sea on recreational land, promote their own businesses, and open clinics for relatives," the publication states.

As of 11:59 PM Moscow time on March 4, no such statement by Melikov has been published on the Dagestan governor's website or on the regional governor's administration's Telegram channel. The official website of the head of Dagestan contains a news release from March 3, stating that Sergei Melikov held his traditional monthly meeting with the heads of the republic's government bodies on issues related to citizen appeals, certification of educational institution employees, municipal budget allocation, and solid municipal waste management in the republic.

The issue raised by Melikov regarding unpaid taxes is not about taxation or the responsibility of deputies and businesses, but about the upcoming elections, according to Chernovik.

"Now is the time to form the lists of candidates for the next convocation of the People's Assembly of Dagestan. And, given the situation in the country and globally, this list should include more representatives of the privileged class—members of the Special Military Forces, mothers and wives of fallen soldiers, representatives of the security forces, and leading businessmen. But will all of them fit into the 90 seats of the Dagestani parliament's assembly hall? What do taxes and business have to do with it?" “Considering that linking this issue, for which fiscal and law enforcement agencies are fully responsible, to the activity of deputies is a search for plausible pretexts to purge existing lists,” the publication says.

A member of the Parliament of Dagestan has been stripped of his mandate following a lawsuit by the prosecutor’s office

“It’s very strange that Sergei Alimovich, while criticizing the deputies of the Dagestani Parliament for being gray-market businessmen, "They're not pulling out the zones, and they've also wasted five years as deputies, and they didn't mention or comment on the situation with Kirill Glazov. Why is that? Or was Glazov much more effective over these five years (as a legislator, not as a corrupt official) than Sefer Aliyev, whom Melikov criticizes?" another publication says.

"Novoe Delo," continuing the discussion, asks: what does the former State Secretary of Dagestan have to say about this?, and provides a link to its previous publication from June 20, 2025.

It states that it would be interesting to know the amount of taxes paid by the Republic's State Secretary Magomedov and First Deputy Prime Minister of the Republic of Dagestan Ruslan Aliyev.

"Especially the State Secretary: he's a wealthy man, with restaurants, hotels, and oil depots covering hectares of land. This could be a great image move, a kind of "patriotism championship." We could start, for example, with a land tax on the hundreds of hectares of land under the oil depot. What is the cadastral value of this land, and how does it correspond to reality? "It would be very appropriate if the prosecutor's office moderated such a discussion," Novoye Delo notes.

The case against Magomedov highlighted the secretive nature of the power structure in Dagestan

In September 2025 The Prosecutor General's Office filed a lawsuit demanding that land plots, residential and commercial properties belonging to the former Secretary of State of Dagestan, Magomed-Sultan Magomedov, and his relatives be transferred to the state. The agency estimated the value of 53 properties at 500 million rubles. Previously, the court ordered the nationalization of Magomedov's oil transshipment complex and related companies, whose property had previously been seized. In August, the FSB announced a theory regarding Magomedov's involvement in the theft of Dagnefteprodukt, the largest federal oil transshipment complex in the North Caucasus, from the state. Magomedov and other defendants in the fraud case have had property worth 3 billion rubles confiscated.

The editorial board of the "Caucasian Knot" does not have comments from deputy Sefer Aliyev regarding possible criticism directed at him by the head of Dagestan.

Melikov's words drew criticism from residents of the republic

A teacher at one of the Dagestani universities, Ramazan, told a "Caucasian Knot" correspondent that if Melikov's speech addressed to the regional parliament deputy is true, then it is clearly aimed at the wrong person.

Numerous "controllers" will certainly respond to Melikov's words, wanting to curry favor, and begin to harass small businesses.

"Parliament initiates and adopts republican "Under the laws, deputies don't inspect businesses or monitor tax collection. That's what the tax service and regulatory agencies are for. It's surprising that there hasn't been any criticism of them," says Ramazan.

"Entrepreneurs are already subject to massive inspections, and sometimes even extortion, from various 'inspectors.'" "Melikov's words will likely be heeded by numerous 'inspectors' eager to curry favor and begin to harass small businesses," says store owner Akhmed.

The collapse of the housing and utilities sector in Dagestan has complicated Sergei Melikov's election campaign.

"Illegal construction is thriving in Dagestan, there are huge problems with housing and utilities, and yet they're once again targeting small businesses. "It seems the authorities have nothing better to do," says Albina.

As reported by the "Caucasian Knot," in Makhachkala, the mayor's office is carrying out large-scale demolition efforts to remove what the city administration considers illegally located retail facilities on sidewalks and public spaces. Some residents of the capital of Dagestan criticized these actions, calling them a PR stunt, and noted that Makhachkala has many other unresolved problems.

Earlier, RIA Derbent editor-in-chief Milrad Fatulaev told a Caucasian Knot correspondent that elections to several municipalities and the State Duma are scheduled for September 2026, and the question of appointing a new head of Dagestan or retaining the current head of the republic must be decided.

This period is very important, which is why various high-profile cases have arisen, such as the arrest of Dagestan People's Assembly deputy Izi Aliyev and Magomed Magomedov, editor-in-chief of the newspaper "Youth of Dagestan." Such criminal cases will surface periodically, the journalist believes.