Statement by the Yabloko Federal Bureau adopted on 14.10.2025, published on 23.10.2025

Photo: From left to right: Chairman of the State Duma Committee on Budget and Taxes Andrei Makarov, State Duma Chairman Vyacheslav Volodin, and Finance Minister Anton Siluanov / Photo by Dmitry Dukhanin, Kommersant

The Yabloko party resolutely opposes the new package of tax initiatives submitted by the Government of Russia to the State Duma.

We believe that in conditions of economic stagnation, declining real incomes of the poorest layers of the population, an excessive key rate and still high inflation, the proposed measures are disastrous for the country, business and citizens. Instead of stimulating economic growth and supporting those who create added value, the government once again chooses the simplest and most destructive path — the path of increasing fiscal pressure.

These proposals represent yet another systematic pressure on business and citizens, whilst the real sources of the budget deficit are primarily military expenditure, corruption, lack of budget transparency and control over its implementation. Instead of improving the efficiency of the state’s work and directing the budget towards the country’s development and the welfare of citizens — there are new extortions!

We believe that raising VAT to 22% is a blow to everyone’s pocket. This decision will lead to an inevitable surge in prices for all goods and services, which will cause a new wave of inflation and further impoverishment of citizens. It will create an inflationary spiral, hitting small and medium-sized businesses, which will be forced to bear additional costs. The announced increase in the minimum wage will not compensate for rising prices.

Lowering the threshold for the simplified system of taxation from 60 to 10 million roubles, restrictions on the patent system, and abolition of preferential insurance contributions — this is the destruction of small businesses, a targeted blow to the foundation of the Russian economy. Millions of individual entrepreneurs and small enterprises will find themselves on the brink of bankruptcy, being forced to face an unbearable administrative and tax burden. Many will be forced to withdraw in shadows or close down, which will lead to rising unemployment.

Whilst large raw materials and state corporations enjoy numerous benefits, the main burden of the proposed reforms is shifted onto small and medium-sized businesses and ordinary citizens. We see in this a manifestation of a deeply unjust and short-sighted approach, in which budget problems are solved at the expense of the least protected economic agents.

In effect, these proposals are aimed at liquidating the middle class, as the foundation of the country’s economic development, through a sharp increase in the tax burden, which will cause a reduction in jobs.

Crude fiscal interference in entrepreneurial activities and a number of other actions by the authorities violate the constitutional guarantees of private property rights in Russia. It is known that raising taxes above a certain level leads not to an increase in collection of taxes, but to their reduction due to suppression of entrepreneurial activities and businesses withdrawing in shadows.

There is an obvious absence of strategy in the Government’s actions. Statements about additional budget revenues of 2.3 trillion roubles are not backed by a clear and transparent expenditure programme. Experience from past years shows that these funds will be spent on security forces, dispersed on ineffective projects and short-term solutions, rather than on structural reforms, healthcare, education and genuine economic modernisation.

We demand the withdrawal of this package of anti-people initiatives that are destructive for business.

We propose that instead of raising taxes, efforts should be directed towards stopping senseless and ineffective expenditure, which annually exceeds many times the revenues expected from tax increases.

It is necessary to begin broad public discussion of budgetary and tax policies with the participation of business associations, the expert community, representatives of opposition parties, and civil society.

We call on all entrepreneurs, citizens, and public organisations to unite in protest against these destructive plans, by sending their objections to State Duma deputies. Let us not allow the Government to patch holes in the budget at the expense of our future and the future of our children.

Nikolai Rybakov,

Yabloko Chairman