The Ministry of Finance argued with Medvedev because of the benefits for self-employed

Boris Titov

The Ministry of Finance did not support the proposal of the business Ombudsman Boris Titov to give self-employed citizens with the status of an individual entrepreneur (IP), reports TASS.

The idea Titov, the government has proposed to study Prime Minister Dmitry Medvedev. According to the Deputy head of the Ministry of Finance Ilia Trunina, change of status will only add to the Russians problems, and doesn’t contribute to their exit from shadow economy:

“I don’t know why the Ministry of economic development and Titov do not like the self-employed. Individual entrepreneur is more of a status than self-employed. This is a set of responsibilities, it is necessary to pay insurance premiums in a fixed size, there are a number of limitations and so forth.”

Trunin noted that the Finance Ministry proposes to create for the self-employed individual rules, which will give them preferential status.

According to officials, many citizens that have registered IP, have faced problems after the cessation of activity: “I Think that they owe nothing to anybody, as income don’t get. But the status of IE catches up and gets very painful.” The Deputy Minister recognized that if a majority in the government will support the initiative Titov, the Ministry of Finance to oppose will not.

Business Ombudsman Titov has previously proposed to require self-employed people to make work the patent for 10 thousand rubles. These rules, in his opinion, should be extended to 45 types of activities, including housing repair, sewing of garments, hairdressing and beauty services, repair of household appliances.

Under current law, to do business without registration of a legal entity or entrepreneur can only baby-sitters, Tutors and housekeepers. In November 2016, the authorities have tried to bring out of the shadows about 20 million Russians, then adopted amendments to the Tax code. However, for the year, according to the NRF, as a self-employed registered only 595 of the Russians.