Opora Rossii, a major business association in Russia, has raised concerns about a proposed 3% revenue-based fee on internet advertising distributors. In a letter to Prime Minister Mikhail Mishustin, the organization warned that the fee could harm small and medium-sized enterprises (SMEs) and create financial and administrative burdens.
Impact On SMEs
The letter highlights the reliance of SMEs on online advertising to promote their products. Opora Rossii argues that the fee could lead to higher costs for advertising services on digital platforms. This, in turn, would negatively affect the financial stability of SMEs and result in increased costs for goods and services throughout the supply chain.
Dispute Over Use Of Revenue
Opora Rossii also questioned the legitimacy of the proposed fee, describing it as a fiscal charge unrelated to the direct use of taxpayer-funded infrastructure. According to the association, the revenue from the fee is set to support domestic software developers rather than the advertising distributors from whom the fee is collected. This, they argue, conflicts with the constitutional principles of fiscal charges in Russia.
Call For Dialogue
The organization urged the government to engage with the business community before implementing the fee. It emphasized the importance of reaching a mutually agreed position to avoid unintended consequences for businesses and consumers.
Background And Alternatives
The idea of the fee was first reported in October. Industry participants have since suggested reducing the proposed rate to 1% to mitigate its impact.
As discussions around the fee continue, businesses are calling for a solution that balances government objectives with the needs of SMEs and the broader economy.