Tax Pressure Mounts: Up to 30% of Small Businesses in Russia May Shut Down

Up to 30% of small businesses in Russia, including sole proprietors, could shut down in the medium term, according to economist Nikolai Kulbaka, a candidate of economic sciences. His comments were reported by Govorit Moskva radio station. The expert noted that the situation for a significant portion of small businesses has deteriorated amid growing pressure. This includes an increase in the fiscal burden on companies and individual entrepreneurs. Rising Pressure and Shrinking Margins Against this backdrop, the only realistic way for many small businesses to survive the crisis may be to move into the shadow economy, the analyst explained. The outcome of the ongoing confrontation between authorities and entrepreneurs remains unclear, but Kulbaka believes it will continue in the foreseeable future.