Russia: won't the abolition of the popular tax regime for business be counterproductive?
From January 1, 2021 in Russia will cease to operate "favorite tax for small businesses" - the single tax on imputed income (UTII). The authorities claim that this tax "underpays the budgets" for entrepreneurs.
But the tax cancellation will lead to the fact that for a noticeable part of entrepreneurs the tax burden will increase many times and many - against the background of the difficulties caused by the pandemic - may go into the shadows, as a result of which local budgets will lose a significant share of income, according to experts interviewed by Eurasianet.org.
"In the conditions of a significant decrease in revenue and economic instability, this special regime is not particularly beneficial," agrees the chief tax adviser of the law firm Tax Compliance, Yuliya Pavlova.
You can view the full article in Eurasianet.