Russia: opposition to proposed reduction in SONGO insurance premiums
The Russian Presidential Human Rights Council (HRC) has received opposition to its proposal for a reduction in SONGO insurance premiums
26.04.2024
Article published on the ASI website
The proposal had earlier been supported by the Federation’s Ministry of Economic Development.
In March, Vladimir Putin instructed the Council of Ministers to introduce amendments to Russian legislation that would provide for the extension of reduced insurance premium rates for SONGOs. This would apply to their involvement in:
- Providing social services to the public;
- Research and development;
- Education;
- Health care;
- Culture and the arts (activities of theatres, libraries, museums and archives);
- Grassroots sports (not on a professional basis).
The HRC sent the proposal to extend reduced insurance premiums for charities and some religious organisations to relevant Government departments. However, the Ministries of Finance, Labour and Health did not support the HRC’s recommendation as they felt it would “require funding from the State budget to replace the shortfall in income from non-budgetary sources”. However, the proposal was endorsed by the Ministry of Economic Development.
“If charities and some religious organisations lose the right to apply for a reduced insurance premium of 7.6% from 2025 they will be subject to a standard rate of 30% (until 2023, a reduced rate of 20% was applied). This would mean a four-fold increase in premium payments”, said Svetlana Makovetskaya, Head of HRC’s Standing Committee on the Development of Civil Society Institutions. She said this would affect the activities of CSOs working with “the most vulnerable groups in society who are currently facing serious problems”, adding that the HRC would continue with its work in this area.
