April 26, 2026

Finance Ministry admits that tax increase for small businesses has caused revenue to plummet by almost a quarter

Collections from small businesses on tax regimes affected by the VAT increase in the first quarter of 2026 collapsed by 22.2% compared to the same period in 2025. This was reported by Elena Lebedinskaya, director of the revenue department of the Ministry of Finance, according to Vedomosti. The official did not provide absolute figures for receipts. However, according to data from the Federal Tax Service, which the publication reviewed, the indicator fell by 16% in the first quarter to 537.2 billion. This refers to collections from small businesses on tax regimes affected by the VAT increase from 20% to 22%, with a simultaneous reduction in the threshold from which this VAT is levied, from 60 million to 20 million rubles. All special regimes for small businesses show negative dynamics, except for the tax on professional income, but its contribution to the total amount does not exceed 4%, experts stated. Receipts from them are mainly credited to regional budgets. Why is this happening? Some businesses are simply going bankrupt and closing due to tax increases. Others are looking for opportunities to move into the shadow economy. Context. From January 1, 2026, the authorities increased VAT from 20% to 22%, canceled social security contribution benefits for businesses, and also reduced the annual revenue threshold from 60 to 20 million rubles, which allows working under a simplified tax system without paying VAT. The Ministry of Finance then expected this to bring an additional 200 billion rubles.