Lawmaker Andrey Klyuchev of the New People party has raised alarms about a government proposal to lower the VAT revenue threshold from 10 million rubles to 6 million rubles annually. This change would subject more small businesses to the value-added tax, increasing their compliance costs and potentially reducing their profit margins. Klyuchev argues that this policy shift is particularly risky for the regions, which rely heavily on small and medium-sized enterprises (SMEs) for economic growth and employment.
The proposal is part of a broader fiscal reform aimed at modernizing Russia’s tax system and improving revenue collection. However, critics, including Klyuchev, warn that it could inadvertently stifle entrepreneurship and innovation, especially in regions with already struggling economies. The lawmaker’s concerns highlight the debate over the balance between fiscal responsibility and economic stability in Russia’s current economic climate.