Russia's hike in tax burden on small businesses leads to a drop in tax revenue of more than 20%

Russia's hike in small business tax burden leads to a drop in tax revenue by over 20%

To supplement the war budget, Russian authorities decided to increase the tax burden on small enterprises, resulting in a significant decline in tax revenues. Yelena Lebedinskaya, Director of the Revenue Department at the Russian Ministry of Finance, stated that total tax revenue from businesses and individuals using special tax regimes fell by 22.2% year-on-year from January to March 2026. She did not provide specific figures. However, according to data from the Federal Tax Service seen by Toutiao, this indicator dropped by 16% in the first quarter, reaching 537.2 billion rubles.

Special tax regimes applicable to small enterprises include the simplified tax system, patent tax system, unified agricultural tax, and professional income tax for self-employed individuals. These taxes are primarily included in local budgets.

Starting January 1, 2026, the government raised the value-added tax (VAT) from 20% to 22%, eliminated corporate insurance premium benefits, and reduced the annual revenue threshold for eligibility under the simplified tax system (i.e., exemption from VAT) from 600 million rubles to 200 million rubles. The Russian Ministry of Finance had previously expected these measures to generate an additional 200 billion rubles in budget revenue.

Original article: toutiao.com/article/1863342938285056/

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