PREAMBLE

The economic rights and freedoms of citizens are an integral part of universally recognized civil rights and freedoms.

The Russian state guarantees the economic rights and freedoms of citizens, which serve as the foundation for long-term sustainable economic growth, consistent growth of national prosperity, and successful societal development.

Restrictions on economic rights and freedoms are only possible in accordance with the Constitution of Russia and the norms established by this Act.

Economic freedom is a fundamental principle of state policy, manifested in ensuring freedom of economic activity, citizen participation in the formation of tax and budget policies, limiting the economic size of the state, and implementing responsible macroeconomic policies.

ARTICLE 1. FREEDOM OF ECONOMIC ACTIVITY

1.1. Russian citizens have the right to engage in trade, intermediary, procurement, production, investment, consulting, and financial activities without special permits.

1.2. Economic activities in the fields of production, trade, transportation, storage, and the provision of services related to:

weapons, ammunition, explosives;

poisonous substances;

radioactive substances;

narcotics, medicinal products;

the threat of spreading infections and diseases, are subject to federal regulation.

ARTICLE 2. CITIZEN PARTICIPATION IN THE ESTABLISHMENT OF GENERAL STATE TAXES

2.1. Rates, calculations, and collection procedures for general state taxes are determined in accordance with the Tax Code of the Russian Federation.

2.2. The distribution of funds collected in the form of taxes and other mandatory fees and payments between the federal, regional, and local budgets occurs in accordance with the norms of the Constitution of the Russian Federation, the Budget Code of the Russian Federation, as well as agreements concluded between the state authorities.

2.3. The introduction of new types of general state taxes, except excise taxes, can only be done through a federal referendum, except for temporary fees that can be introduced during a period of military or emergency situations. Additional local fees may be introduced by the decision of local authorities in accordance with their charter, but they cannot essentially increase the amount of general state taxes and fees.

2.4. Introduction of a new tax or modification of an existing tax does not constitute the introduction of a new type of nationwide tax or an increase in the upper rate of an existing tax, if the new tax or tax modification is an alternative to the existing tax and replaces it, thus not increasing the overall tax burden. Changing the tax rate also does not constitute the introduction of a new type of nationwide tax or an increase in the upper rate of an existing tax, if such rate changes are within the lower limit of the applicable tax rate.

2.5. A referendum on the issues specified in paragraph 2.3 of this article is conducted in accordance with the Law of the Russian Federation on referendums. The procedure for levying taxes and fees, as well as the methodology for their calculation, cannot be subject to a referendum unless a different decision is made by a federal authority of state power.

ARTICLE 3. DEFINITION OF LIMITS OF MACROECONOMIC INDICATORS

3.1. In order to ensure the well-being of citizens through long-term sustainable economic growth for a period of 10 years after the entry into force of this Act, the following maximum limits for macroeconomic indicators must be achieved:

The ratio of tax revenues of the expanded government to gross domestic product (GDP) shall not exceed 20%;

The ratio of expenditures of the expanded government to gross domestic product (GDP) shall not exceed 20%;

The ratio of the budget deficit of the expanded government to GDP shall not exceed 1%;

The ratio of sovereign national debt to GDP shall not exceed 30%.

3.2. In the event of a declaration of martial law, a budget that does not comply with the limits set forth in paragraph 3.1 of this article may be approve

ARTICLE 4. PRINCIPLE OF BUDGET UNIVERSALITY

4.1. All revenues of federal, regional, and local budgets shall be allocated to finance the general expenses of the respective budgets.

4.2. Linking specific government revenues to the financing of specific budgetary expenditures is prohibited, except for targeted fees that may be introduced by local authorities and self-government bodies, as well as contributions to federal and regional funds that carry out their expenditures within the limits and restrictions established by this Act.

ARTICLE 5. FREEDOM OF CAPITAL MOVEMENT

5.1. Residents and non-residents have the right to conduct currency exchange operations and open accounts in financial organizations of the Russian Federation without any restrictions.

5.2. Residents and non-residents have the right to import and export cash from the country.

5.3. Residents and non-residents have equal rights to participate in the circulation of securities and financial instruments issued within the territory of the Russian Federation.

5.4. The right of Russian residents to open accounts outside the Russian Federation, to purchase and participate in the circulation of securities issued by foreign issuers, can only be limited by the requirement to provide proof of the legality of the origin of funds.

5.5. Capital movement is free, except in cases provided for by international agreements of the Russian Federation, as well as in cases where capital owners are accused of criminal activities.

ARTICLE 6. FINAL PROVISIONS

6.1. Legislative and regulatory acts that contradict the provisions of this Act shall be repealed, including through judicial proceedings in the Supreme Court of the Russian Federation.

6.2. This Law shall enter into force on January 1, 2025.