Business association Delovaya Rossiya proposes partially scrapping simplified tax system, taxing Russians’ passive income

Delovaya Rossiya, a Russian business association, has drafted proposals to overhaul the Russian economy, according to the Russian business news outlet RBC. Among the 52 proposed measures, some would significantly tighten conditions for small and medium-sized businesses, while others focus on citizens' passive income. Some key proposals include eliminating the simplified tax system (USN) with a 6% rate, lowering the VAT threshold under auto-USN from 60 million to 20 million rubles, and removing the patent-based tax system widely used by microbusinesses.

The association also suggests introducing social security contributions for citizens with income mainly derived from interest or dividends, as well as implementing an inheritance and gift tax on amounts surpassing 50 million rubles. Furthermore, Delovaya Rossiya advocates restricting imports of "strategic innovative products." However, the proposal is criticized for potentially harming small and medium-sized businesses.