Overview
- Draft measures for 2026 would cut the VAT exemption threshold for small firms from 60 million to 10 million rubles, pending parliamentary approval.
- The government is weighing the removal of VAT and other tax benefits for IT companies, a possibility acknowledged by Digital Minister Maksut Shadayev.
- Industry associations and entrepreneurs have sent protest letters warning of closures and layoffs, with groups saying more than 700,000 business owners would be affected.
- A survey cited in reports found about one third of over 11,000 respondents would shut down if the tax changes take effect, and one quarter expect to reduce staff.
- The Finance Ministry indicated it may adjust the package before the bill’s second reading, as the 2026 deficit is projected at 3.786 trillion rubles (1.6% of GDP) and growth is seen slowing to around 1.2%.