A major Russian business association has proposed sweeping away tax breaks for small businesses. Here’s what would change — and why the Kremlin might agree.
Delovaya Rossiya, one of Russia’s largest and most influential business associations, has proposed more than 50 economic reforms to the authorities, RBC reported. Many clearly run counter to small businesses’ interests.
Delovaya Rossiya, a prominent Russian business association, has proposed over 50 economic reforms aimed at the authorities, according to RBC. Many of these reforms contradict the interests of small businesses and sole proprietors. The group seeks to eliminate tax regimes that benefit small businesses, abolish the patent tax system, and introduce a uniform revenue threshold for value-added tax (VAT) across all special tax regimes.
They also propose taxing gifts and inheritances, taxing social insurance contributions from individuals who earn the majority of their income from interest and dividends, and taxing inheritances and gifts. Additionally, Delovaya Rossiya wants to strip regional governments of the ability to lower USN tax rates and abolish the patent tax system (PSN).
These proposals aim to address misuse of special tax regimes by "unscrupulous entrepreneurs" and distort market competition, according to Alexey Repik, the chairman of Delovaya Rossiya. However, these changes could negatively impact small businesses, forcing many to close due to increased tax burdens, and may also reduce regional budget revenues.
The proposals will be presented at Delovaya Rossiya's forum on October 15, with Vladimir Putin expected to attend, and have already been sent to government agencies for review.
Written by urgent.news from Meduza (English)'s reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
