Russia’s draft budget for the next three years now includes a new item of expenditure. The government plans to spend RUR 1 bio ($14.8 mio) to promote self-employment.
The money will be spent on a national information campaign. Part of the National Economy state programme, it will receive RUR 215 mio ($3.1 mio) in 2019 and RUR 430 mio ($6.3 mio) and RUR 400 mio ($5.9 mio) in the subsequent two years, respectively. The proposal was supported by the State Duma Budgeting Committee.
The campaign is an attempt to legitimize taxation of self-employed entrepreneurs. According to the new legislation, freelancers will have to pay 4% for cooperation with individuals and 6% on income from companies. Residents of Moscow, the Moscow Region, Tatarstan and the Kaluga Region will become the first participants in the ten-year tax experiment.
However, considering that such measures are extremely unpopular, the authorities are torn between the idea of exorbitant fines and expensive freelancing education.