Putin Proposes Delay in Tax Hike for Small Businesses

Russian President Vladimir Putin announced a proposal to delay planned tax increases for small businesses. Speaking at the St Petersburg International Economic Forum, he suggested setting a revenue threshold for VAT at 20 million roubles. The government plans to lower this threshold progressively from 2025 onwards.

Russian President Vladimir Putin announced on Friday plans to postpone tax increases for small businesses. This announcement was made during the St Petersburg International Economic Forum.

To provide relief, Putin proposed setting a revenue threshold of 20 million roubles before the obligation to pay VAT kicks in, allowing businesses to remain tax-free at this level indefinitely.

The government had initially suggested introducing higher taxes starting from 2025, with the tax-free threshold decreasing to 20 million roubles in 2026, 15 million roubles in 2027, and further to 10 million roubles in 2028, from the current threshold of 60 million roubles.