Titov predicted the departure of half a million businessmen in case of increase of fees


At least half a million individual entrepreneurs will leave the market in case of increasing pension contributions, said business Ombudsman Boris Titov in an interview with radio station “Moscow speaking” on Friday. He commented on the information of the newspaper Vedomosti that the Ministry of Finance comments on the draft anti-crisis plan proposed to raise the burden on entrepreneurs.

“Those who are richer, can’t be forced to pay higher pension contributions, and want to “smear” it all over the whole site, to make those who are quite poor, quite small, to pay for the rich” — said Titov. According to him, if this proposal is accepted, the market “will go away at all, apparently, and all will lose at least half a million entrepreneurs.”

Titov doubted that the proposal of the Ministry of Finance will be implemented. But he noted that in business it is very important “moods” and the emergence of such initiatives that “go against the interests of the business”, adds mood. “In business if you say “halva”, it becomes sweet”, he concluded.

Earlier on Friday “Vedomosti” with reference to available a copy of the comments of the Ministry of Finance to crisis plan reported that the Agency proposes to increase the burden on individual entrepreneurs, by setting a fixed pension insurance contribution for self-employed in 1-2 of 2 of the minimum wage “depending on the duration of the experience.” At present time base for fixed contribution is 1 of the minimum wage. If the entrepreneur receives income less than 300 thousand rubles per year, the pension contributions amount to 19 356 rubles per year (26% from 1 minimum wage, multiplied by 12). Entrepreneurs with annual income more than 300 thousand rubles additionally pay 1% of the excess income above this amount.

In November 2015 Titov, commenting on the proposal of the Ministry of economic development to increase the rate of the unified tax on imputed income for small businesses, has warned that it will lead to negative consequences entrepreneurs. “In such a situation, we risk to remain without just business,” he warned.