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Russian entrepreneurs rebel against Putin: “This will finish us off”

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A wave of outrage is growing among entrepreneurs in Russia. Following the announcement of a new tax package, which effectively taxes even micro-businesses, despair is increasingly being expressed on social media. One symbol of this outrage is a video on Instagram showing the owner of a small jewelry store sobbing in front of the camera, explaining that she sees no future for her business. "I’ve survived COVID, the dollar surge, the haters, the fines, QR codes, and the social media block, but now—that’s it. This tax will finally finish us off," she says, barely holding back tears. New tax rules will come into force in Russia on January 1, 2026:
the VAT rate increases from 20% to 22%; and the threshold for its payment is reduced from 60 million to 10 million rubles per year . This means that even the smallest entrepreneurs —small shops, workshops, and beauty salons—will have to pay the tax. For millions of business owners, this is effectively a death sentence. Economists say the tax increase will hurt domestic demand, lead to the closure of thousands of businesses, and increase unemployment.
The reason for the sharp tax hike is simple: Russia is running out of funds for the war and to cover the budget deficit . According to Russian economists, military spending will consume up to 40% of the budget by 2025 , while oil and gas revenues are plummeting following the Ukrainian attacks on oil refineries and Western restrictions. To plug the holes, the authorities have decided to "milk" business. But, as even pro-Kremlin experts note, this could lead to mass bankruptcies and social unrest .
In her video, the entrepreneur explains that her Kamushki store has been in business for 13 years, but now she doesn’t know if it can withstand another blow: "Every year there are new taxes, new fines, new bans. I’ve endured and worked, but I can’t bear it in silence anymore." Her words provoked a strong reaction even among loyal Russians: the video was followed by thousands of comments expressing outrage, fear, and hopelessness.
Small businesses, which have always been a "cushion" for the regional economy, are effectively crumbling before our eyes . Against the backdrop of war, mobilization, sanctions, and falling demand, there’s now also a tax hike. For the Kremlin, this is a way to maintain the system. For the people, it’s another point of no return.
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