business protests against the amendments to the Tax Code

1st April 2014

If the document comes into force, small and medium sized enterprises, operating in the frames of the so-called simplified tax system (STS) and paying 6% of revenues, will also have to pay property tax, experts say

Small business protests against the amendments to the Tax Code, approved recently by the Federation Council. “If the document comes into force, small and medium sized enterprises, operating in the frames of the so-called simplified tax system (STS) and paying 6% of revenues, will also have to pay property tax”. The amendments affect those property items, where the tax base is equal the cadastral value. These include business and shopping centers, offices, public catering and consumer services, etc.” - says “Nezavisimaya Gazeta”.

Thus, for most entrepreneurs the effect of the simplified scheme will be reduced to zero, - say the representatives of “OPORA RUSSIA”.

 “These amendments in fact put an end to the benefits provided by the State to those who use simplified tax system. The owners of small restaurants, cafes, shopping centers, offices and industrial space will be forced to stop their business,”- said a member of “OPORA RUSSIA” Presidium Alexey NEBOLSIN.

The representatives of “OPORA RUSSIA” addressed to the First Deputy Prime Minister Igor SHUVALOV and to the Presidential Aide Andrey BELOUSOV and asked to reconsider the amendment. According to “OPORA RUSSIA”, the amendments will increase the burden on small businesses more than twofold and lead to about 200 billion rubles loss by entrepreneurs. The document was adopted without the consent of business community, and all controversial amendments appeared in the draft only during the second reading. Not only the amendments result in the development of “shadow business”, but also increase costs for consumers, says the appeal letter of entrepreneurs.

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