Support The Moscow Times!

Government Considering Lower Payroll Tax

The government is set to revisit the tax rate for sole proprietors after more than 300,000 such entrepreneurs went out of business since the start of this year.

President Vladimir Putin said he was going to order the Cabinet to look into the matter as he was meeting business ombudsman Boris Titov, said a Kremlin statement released Tuesday.

The payroll tax rate doubled for this class of entrepreneurs to 36,000 rubles ($1,200) a year on Jan. 1.

"We would like to strongly ask … if possible to suspend or rescind the decision," Titov said in a transcript of the Monday-evening meeting posted on the Kremlin website.

Titov said 317,300 people had decided to terminate their businesses since the tax increase, which was about 10 percent of the total number of these businesses.

"A portion of these entrepreneurs will register with the employment office and receive unemployment benefits," Titov said.

He added that the development would cause a lack of services that people use next to their homes.

The United Popular Front, a pro-Kremlin movement, on Monday published a proposal to reduce the rate to the previous level.

… we have a small favor to ask. As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

Once
Monthly
Annual
Continue
paiment methods
Not ready to support today?
Remind me later.

Read more