Baker Fights Tax Hike After Speaking to Putin on Live TV

Exactly a month ago, all of Russia saw how the president asked for pies from the owner of a modest Moscow region bakery, «Mashyenka». On behalf of all small businesses, entrepreneur Denis Maximov asked a question about tax increases for small businesses. After the president«s attention, the governor of the Moscow region and the head of Lyubertsy came to »Mashyenka«.

It seemed that Denis Maximov got a «golden ticket» — the highest attention and protection. MSK1.RU came to Kraskovo to find out what this attention actually changed. Did the businessman receive real help or did he just become the hero of a beautiful PR move, while tax screws are being tightened for all small businesses?

«99% of People Asked Which Pies We Sent to the President»

After the «presidential» advertising, which many compared to the story about «Vyatka kvass», madness ensued here. On the day of the broadcast, the counters were swept clean, delivery orders had to be frozen, and Denis was bombarded with a flurry of calls on his phone. As he jokes, he answered the first 300 calls, but didn«t manage the next 500.

«The wave was insane. 99% of people asked which pies we sent [to the president],» says Denis Maximov. The answer, by the way, is simple: with potato, with cabbage, and with apple.

The assortment at «Mashyenka» is classic but varied: besides standard pies, there are loaves, belyashi (fried meat pies), large pies, sausages in dough, «cinnabons» with icing, sweet pastries, sandwiches, pizza, bread, and confectionery.

All products are prepared right here, in the larger bakery, and some are taken to another outlet. Denis jokingly calls himself a «monopolist»: there are no other pie shops in the town. All of Kraskovo comes here for fresh baked goods. In the morning, pensioners drop by; during breaks in the afternoon, children from nearby schools run in; in the evening, workers come from Moscow and Lyubertsy.

After the story with Putin, people specifically came here from Lyubertsy and Noginsk, but the core is local, their own. Denis opened two bakeries in Kraskovo six years ago, sensing potential, although formal traffic calculations were against it. They operated at a loss for half a year but held on.

Guests from Lyubertsy, including the district head, are not the only consequence of the broadcast. Since 19 December, Denis and his daughter Maria have been recognized on the streets. Sometimes people just pointed fingers, whispered, and sometimes approached and took photos. At school, Masha was once asked for an autograph. Meanwhile, customers sometimes call not only the daughter but also Denis Maximov himself «Mashyenka».

«Right before the New Year, on 30, 31 December, courier delivery cost crazy money,» Denis Maximov recounts. «We usually order couriers, around Kraskovo it»s 250, 400 rubles maximum. And here I have an order for 2000, delivery — 1200. No point in bothering a courier, I went myself, delivered orders. An order comes in from Lyubertsy. We meet near the shopping center, a dashing guy drives up, in uniform…«

The influx of customers after the direct line with the president was, of course, pleasant. By January, the hype subsided, but the average check and customer flow remained above usual. The attention from authorities was also tangible. Besides officials« business cards, Denis received a return gift from the president — a basket with jam, honey, a set of wines for the New Year, and an icon that Denis is saving for his grandchildren.

But the main problem, for the solution of which Denis contacted the president, has not disappeared anywhere. And it could not disappear, because it is a systemic crisis for millions of small enterprises.

The Banker Who Bakes Pies in His Hometown

Denis Maximov worked in the banking sector for two decades. And eight years ago, he sharply changed his life. Denis Maximov traded financial reports for dough and oven heat. He started with a «Makovka» franchise in Zhukovsky, Moscow region. He remembers its first day of operation with warmth.

«In the evening, we sat down to count the cash, this goes here, and what»s this? And this, it turns out, we earned. It was the first time I didn«t get an SMS with a salary, but when I earned my own money myself. I took it right away. And how old was I then, Mash? I was already 40 years old,» says Denis with a smile. He probably couldn«t have imagined then that a few years later, the president would try his pies.

We are sitting in Denis«s bakery. In his hands is a stack of papers with calculations for revenue, purchases, and taxes. Next to him sits his beautiful daughter Maria Denisovna — that very Mashyenka. She is 17 years old, and during holidays she often helps the family: sometimes she stands at the cash register, sometimes she accepts delivery baskets. Outside the window — snowdrifts along the narrow road, but the area at the entrance and the path to it are carefully cleared.

When the franchise contract ended, Denis and his wife renamed the outlet to «Mashyenka» — in honor of their eldest daughter. Then two more bakeries with the same name opened in Lyubertsy«s Kraskovo — the town where he grew up.

«My wife tried to dissuade me: »Don«t, everyone here knows us.» Especially now! I walk down the street, every 30 meters someone says hello. Because at first we stood at the cash register ourselves. We practically lived at the cash register until we found a salesperson,« Denis recounts.

Denis has four children: two daughters and two sons. His wife, under whose name the individual entrepreneurship is registered, is currently caring for the youngest. The children are involved in the family business: the eldest son, in his free time from work, can help in the kitchen; the younger daughter, an artist, gladly makes design layouts for advertising. But of course, Mashyenka herself is the most passionate about her father«s business. She helps her father and learns the basics of business.

Despite excellent grades, she is not sure about the future: admission scores are only rising, the number of preferential spots is increasing, but «regular» state-funded spots are only decreasing. She plans to apply for management studies, but says: «God willing, I»ll get in somewhere at all.« The girl does not consider paid education: too expensive.

In an «ideal world,» where the bakery«s affairs are going well, Masha wants to continue the family business.

Tax Screws

Until 1 January 2026, Denis«s tax burden was predictable and manageable. Working under a patent, the entrepreneur paid about 110,000–115,000 rubles per year (approximately $1,100–$1,150 at current rates) plus personal income tax for employees. If divided by 12 months, that comes to 9,000–9,600 rubles (about $90–$96).

With revenue (before deducting all expenses. — Ed.) from three bakeries of about 40 million rubles per year (about $400,000), Denis no longer falls under the threshold for not paying VAT. In January 2026, according to the entrepreneur«s forecast, he will have to pay about 450,000 rubles (approximately $4,500). The tax burden has increased 50-fold for him.

After the direct line, Denis was asked when «Mashyenka» would open in Moscow, but the entrepreneur is not ready for such boldness: due to new taxes, it is unknown whether the bakery will exist at all.

450,000 rubles in taxes per month is not the limit: if revenue is higher next month, then budget payments will increase proportionally. And this is besides having to hire a professional accountant and bear additional costs. Rent and products are not getting cheaper either.

For comparison: previously, after deducting all expenses, the entrepreneur had about 300,000 rubles left (approximately $3,000). Every month, as Denis Maximov says, he managed to save some amount. In January of this year, the businessman hopes to earn at least 150,000 rubles (about $1,500). Is that much for a family of six?

«I»ll be hit with 450–600 [thousand rubles] in taxes per month. I«m sitting here now, looking… I can show you my account in »Sberbusiness,« there, I think, it»s 400,000 and change now.«

There are, of course, some developments in solving the issue. Denis Maximov was already in the government of the Moscow region in December and literally the other day spoke on the phone with Minister of Economic Development Maxim Reshetnikov. Official bodies also respond to the businessman«s inquiries without delay.

«There are calls from high-ranking people who are trying to resolve the issue, since they apparently received such a task. But since these are the same people who made the decision [to increase taxes], which put us in this position, I don»t expect any miracles,« says the entrepreneur from Kraskovo.

But Denis Maximov is not giving up yet. He chose to fight for reducing the tax burden for the production business — the very one that, according to the president, should not suffer.

Together with other entrepreneurs, he prepared a note with proposals for the government. According to Maximov«s idea, the tax pressure can be eased through a zero rate of the simplified taxation system (STS) at the regional level.

«The proposal is absolutely not fantastic, we realistically assess the situation, understand that no one will roll back VAT anywhere, but there are some maneuvers at the regional level, at the federal level, which, we hope, the authorities will go for,» assures Denis Maximov.

Maximov, with other bakery owners, asks to include «activities for providing food and beverages» in the list of priority sectors at the local level — this way it will be possible to defend «zero» STS for themselves and other entrepreneurs in this field.

He also checked what benefits and support measures for small businesses are now available to him.

«They offer me to buy equipment with a 50% »discount« on subsidies from the Moscow region. I thought about it. But I»ll give such an analogy…«

«Indeed, it would be nice to update the equipment. I would gladly participate in this program. But I need to understand that I will simply exist. I sold my car last month, I have a small stash. And I»ll last until March with it, adding my own to the business. And that«s it. No options. We»ll tumble, see,« Denis shares his unconsoling plans.

Sometimes Denis, tired of running the business, tells his wife: «Alright, if need be, we»ll close everything, leave one [bakery], we«ll bake ourselves. You»ll stand at the cash register, and I«ll bake pies. And that»s it. And, God willing, we«ll fit into 10 million [to avoid paying VAT].»

«I Don»t Want to Go into the Shadows Anywhere. I«d Rather Close»

As the entrepreneur believes, the injustice lies not in the tax increase itself, but in the suddenness of the announcement.

«Have you seen the film »Liquidation«? Mashkov plays the chief policeman there. And he enters his office, and his colleague is interrogating a criminal. The criminal sits content. He says: »Well, Senya, are you happy?« — »Yes, my boss promised me ten.« Not life, but ten years. He says: »Yes, there was such an agreement. And now the agreement is changing.« That»s exactly what happened to us. The agreement changes in an instant,« says the entrepreneur.

Denis Maximov expected tax increases, but hoped that «the big guys» would be «sheared.» Although even to an increase in his own tax burden, Denis was prepared, just didn«t expect how lightning-fast it would be.

«I understand everything perfectly. There are »big guys« whom we apparently get in the way of. I admit it. Times are tough, I know. If the president says: »So, guys, we«re closing all our individual entrepreneurs, and you, Denis Vladimirovich, must transfer your bakery to the Lyubertsy bread plant»s department.« No questions! Give me a position, I»ll be on a salary. I understand everything. But to change everything like this: without explanations, a month before the New Year… it«s somehow unpleasant,» Denis reflects.

As the entrepreneur believes, the VAT payment threshold should have been lowered gradually, observed, then adjusted based on observation results. Then business would have adapted. Due to the sudden and sharp tax increase, many simply closed.

«What kind of market economy is that then? Out of habit, I always look at rental listings for premises. So many listings appeared after the New Year! Everyone, meaning, closed down. The market didn»t adapt. Apparently, not everything was thought through. But how wasn«t it thought through? I sit here and think. What didn»t they think through, how will people live after the innovations?«