The law “On self-employment” adopted

On November 19, 1986 the Supreme Soviet of USSR adopted the law “On self-employment” that intended to provide control to the state bodies over the developing underground private business.

Before, a private initiative of the citizens was considered inappropriate and illegal and was often subject to administrative or criminal penal. The adopted law allowed “self-employment in the field of cottage industry, consumer services and other types of activities based exclusively on individual work of the citizens and their families’ members”.

Now, according to the news law, “the self-employment in USSR was used for more complete satisfaction of the demand of goods and services, higher involvement of citizens in generally useful activity, providing them a possibility to have an additional income in accordance with their labor content”. From now on the self-employment was legalized for the Soviet citizens but only during the time free of their principal occupation and in the strictly determined fields of activity. At the same time using of wage labor was strictly prohibited. The tax for private enterpreneurs’ profit reached 65%. The law made provisions for supporting the self-employed citizens. It was directed to the executive committees of local Soviets of Peoples’ Deputies to assist them in purchasing of primary products, materials, tools and other stock necessary for the work.

The law “On self-employment” became the first stage in history of organization and development of small and average business in the country. Practically for the first time in 60 years the enterprise was legalized in USSR.

From January 1, 1991 the law “On self-employment of USSR citizens” lost its validity due to the adoption of a new law of USSR “On enterprises and entrepreneurship”.

Lit.: К 15-летию принятия закона «Об индивидуальной трудовой деятельности граждан СССР» // Деловая пресса. № 17-19 (159-161). 2002. 17 мая; Об индивидуальной трудовой деятельности // Ведомости Верховного Совета СССР. 1986. № 47. Ст. 964.