Meet the Russian business owners feeling the pinch from a new wartime tax policy
Russian businesses say they are struggling due to wartime tax policy
- Russian small businesses are experiencing significant economic pressure due to new tax reforms implemented amidst the four-year war in Ukraine.
- Denis Maksimov, a baker from Moscow, publicly appealed to President Vladimir Putin about the increased tax burden, warning that many enterprises would be forced to close.
- The reforms include a lowered revenue threshold for Value Added Tax (VAT) and changes to the patent taxation system, drastically increasing tax liabilities for small and medium enterprises.
- Entrepreneurs across Russia report declining demand, soaring operational costs, and a sense of abandonment by the government, leading to widespread business closures and downsizing.
- Experts suggest these reforms are a deliberate strategy by the Kremlin to secure state revenue, which, despite a temporary reprieve for Maksimov's business, is expected to impede future economic growth.
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