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YABLOKO party to submit to the President of the Russian Federation its concept of support for small businesses

March 7, 2002

Next week the YABLOKO party will submit to the President of the Russian Federation its concept of support for the small business sector, noted Deputy of the State Duma Igor Artemyev during a press conference on March 3, 2002. According to Artemyev, the meeting of the expert council of the party last week developed the concept.

In particular, YABLOKO proposes expanding the notion of "small business" which should now include enterprises with less than 50 workers and set a single tax from turnover equivalent to not more than 6% of total turnover (3% should go to the federal budget and 3% to the regional budget) and payments of a single social tax.

Artemyev is convinced that the adoption of such a two-phase system for small businesses will reduce the tax burden by over 50%. Artemyev also said that the law on simplified taxation of small businesses adopted in 1995 "was not applicable" owing to internal discrepancies. Nevertheless, this law contains a very convenient variant of tax payments - only a 10% tax on proceeds, of which 6.67% will go to the regional budget and 3.33% to the federal budget. The law adopted in St. Petersburg in 1998 annulled all taxes for small businesses, except for the 10% tax on proceeds. Enterprises could voluntarily choose any taxation system (either the federal system or the system with one tax): consequently the number of small businesses grew in a year seven times. Thus, small businesses were leaving the "shade", noted Artemyev. However, the situation changed after the bureaucrats began setting a coefficient of tax on imputed income. This pushed YABLOKO towards the development of its concept for support of small businesses and submit it to the President.

See also:
Development of small businesses

Valery Leonov "Igor Artemyev compensated for the dollars lost on oil deals with a single tax on concessions." Commersant, March 1, 2002.

Alians Media, March 7, 2002

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