Russian Small Businesses Warn Tax Hikes May Force Closures, Push Firms Into Shadow Economy

• Proposed tax hikes in Russia could force 1 in 10 small business owners to shut down or move into the shadow economy.
• The new regime lowers the VAT tax break threshold from 60 million to 10 million rubles, affecting 700,000 entrepreneurs.
• Many small business owners fear increased costs and complexity, with a third considering closure and another third considering going informal.
• The government aims to raise funds for military spending, but business groups warn the costs to businesses could far exceed the extra budget revenue.
• Finance Minister Anton Siluanov signaled willingness to adjust the proposal amid strong criticism from business lobbies.

Source: dailysabah.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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