The Moscow Region Business Ombudsman Vladimir Golovnev proposed to develop specific reimbursement mechanism of product's labeling that is mandatory for entrepreneurs.
Vladimir Golovnev issued proposals to the Presidential Commissioner for the Protection of the Entrepreneur's Rights Boris Titov as a result of the workshop of the Moscow Region Business Ombudsman's Social Council.
The current proposals are expected to provide easier way to labeling system for small and medium business. This system is being implemented progressively, according to the 515th Decision of the Government of the Russian Federation "On labelling system by means of identification and good's traceability" from 26.04.2019 year.
The labelling mechanism has already been extended to fur and tobacco products, medication, but has revealed new risks for business, as suggested Vladimir Golovnev, the Moscow Region Business Ombudsman. This includes need for additional equipment, connection to the specialized operator. Among other things, there is a need for retraining or hiring of new staff, labelling of goods remaining, logistical development. That entails unbudgeted cost increases.
“Small and medium business need an adjustment period at least.”- clarified Vladimir Golovnev.
“In addition, - continued Vladimir Golovnev, this will inevitably make price for mass production increase, either reduced competition or reallocating market in favor of large enterprises.”
Another negative factor with additional adverse business effect is penalties imposition in labelling violation.
In the case of failure to comply with the requirements, entrepreneurs have administrative and criminal responsibility:
2 000-5 000 rubles - for individuals,
5 000-15 000 rubles - for officials,
50 000-300 000 rubles - for entities (the article 15.12 of CAVL of Russian Federation),
300 000 – 1000 00 rubles and up to 6 year imprisonment (the article 171. 1 of Criminal Code of Russian Federation).
The entrepreneurs apply to Moscow Region Business Ombudsman's Office with requests of existing legislation to be adjusted.
According to the amendments to items 58,59 of article 2 of Tax Code of Russian Federation from 29.09.2019, activities related to trade in goods with mandatory labelling by identifying marks, are excluded from special tax regime (single tax on imputed income ENVD and patent tax system (PSN).
Separate interpretations of the law carry an extra taxation for business.
Furthermore, due to the lack of any information when applying for current tax system need to be changed, many entrepreneurs end up on general taxation resulting in wasted funds and loss.
"In order to support the small and medium business, it would be useful to postpone the abolition of ENVD and PSN for enterprises selling goods labeled, before the total cancellation over the country.
A normative framework should be developed to provide the state reimbursement for business when incomes not received due to the labelling implementation.
That should be done similarly with cash-control equipment adoption, as well as 50% costs should be recovered by direct subsidy from fund for the support of small and medium business ". - reported the Moscow Region Business Ombudsman Vladimir Golovnev.
