There are many alternatives in Russia but all of them come to the one...

22.09.2011 Today there are heated debates concerning tax policy of the Russian Federation in state bodies, in the Ministry of Finance in particular. In spite of proposed by deputies alternative of tax rates increase – the retirement age increase – nevertheless the government tends to follow the beaten path - to raise taxes.

Let’s recall that many European countries have already changed their legislation and increased the retirement age. However it’s worth taking into consideration that in these countries the process of such an increase will take years, flowing gradually and painlessly.

But Russia aims to obtain quick results from the legislative reforms. Therefore it’s unlikely to consider retirement age increase as a real alternative to tax rates raise although the deputies claim otherwise.

Expert’s opinion

“In spite of Russian ministers convincing speech we can say for sure that now the country doesn’t face the choice problem. It’s likely that the tax rates will increase and therefore it’s normal to expect new appropriate changes in the Tax Code of the Russian Federation. Moreover, the retirement age, as we believe, will also increase - it's just a matter of time. It can’t be certainly said that such a pension reform in Russia will take several stages and take years. Realization of this project will probably take place as soon as possible”.

On the basis: www.taxpravo.ru

Andrianova Irina ( The lawyer of international consulting department of “Honest & Bright”)