Russian Beauty Industry Faces Surge in Closures Amid Tax Reforms
By Editor • August 21, 2026 • 1 min read
The beauty services sector in Russia is grappling with a significant downturn, as business closures soared by 52.5% in the first half of the year, reaching 12,300, according to Kontur.Focus data for Kommersant.
New business registrations have also plummeted by 16.1% to just 13,000. Igor Stoyanov, founder of the Persona salon chain, attributes this decline to the shift from a patent tax system to a value-added tax.
The revenue threshold for small businesses to avoid VAT has been drastically reduced, increasing the tax burden. Many salon owners now find the operational model that once yielded profits untenable under the new regulations. The situation has made starting a new beauty business increasingly daunting, with expectations set to change further in the coming years.
Source: meduza.io
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