Small Businesses in Villages Exempt from Income Tax - New Proposal by Russian Lawmakers
Russian lawmakers suggest freeing small rural business owners from the burden of paying income tax
The bill, which exempts businesses in villages from income tax, is sent for review to the Cabinet of Ministers, following from a message published on March 11 on the social networks of the LDPR party in the State Duma, whose deputies authored the initiative.
Exemption from income tax will be a good help for entrepreneurs who have opened their own business in a village or small town, explained the authors of the amendments. Parliamentarians also propose to allocate 50% of VAT to regional budgets.
“The subjects should have the opportunity to address the specific needs of residents — update public transport, housing and communal services, increase regional surcharges for pensioners, students, large families, as well as form and provide regional programs to support young families, teaching and medical workers,” explains the message from party chairman Leonid Slutsky, head of the Duma Committee on International Affairs.
Source: pnp.ru (Russian)
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While it is good to see relief for small business owners in rural areas, Russia seems to be following the USA model of creating a legislative body and then making myriads of rules and exceptions that will make it increasingly difficult and expensive for anyone to figure out if what they want to do is legal or not. If income tax is oppressive, then perhaps it is better not to have one.