Vladimir Putin, Russian president, yesterday lent his weight to calls for lower taxes and reductions in red tape in an effort to boost the country's poorly-developed small business sector.
He told a session of the State Council, an advisory body of regional leaders, entrepreneurs regularly had to face inspections from para-government bodies that amounted to little more than "legalised bribery".
He said the difficulties in developing small business explained why Russia still lacked a middle class and was overdependent on natural resources. He demanded reforms that would make them "the engine of reform" of the economy.
Mr Putin proposed lower and simpler taxes, a ceiling on the total tax bill, and easier payment methods. Speaking on Russian television afterwards, Alexei Kudrin, the finance minister, said new tax measures for small businesses were set to be adopted next year.
