Russian tax maneuver

02.03.2012 Last winter day, on February, 29th, there was the meeting on economic problems under the direction of the head of the state Dmitry Medvedev. Final decisions at this meeting were not reached. It is necessary to notice that one more discussion of tax reform will take place soon.

Some statements against returning of the rate of social payments in 34 % were expressed by the Ministry of Finance and the Ministry of Economic Affairs and Development. Moreover, the Ministry of Finance offers to lower the base rate of insurance payments to 26 % and to increase earnings level from which they are raised.

Also departments intend to give privileges to business, in particular to release the equipment brought on balance of the companies, from the property tax.

The Ministry of Economic Affairs and Development estimated budget losses from this tax preference in 140 billion rbl. which will be possible to compensate for the account of gradual cancellation of a privilege of natural monopolies under infrastructural property tax. Instead of it the Ministry of Economics suggests to provide additional indexation of their tariffs.

Besides, the Ministry of Economic Affairs and Development plans to give new not raw manufactures vacation concerning profit, property and earth tax.

To compensate budget losses from tax privileges the Ministries offer at the expense of raw sector, luxury tax, and also excises on tobacco and strong alcohol.

Expert’s opinion

«Recently everybody only talks about tax maneuver, and possibilities for it aren't present. There are budgetary obligations which don't allow to reduce tax burden. And these obligations of not reduced character: pensions, grants, defensive expenses, building of objects for the Olympic Games and the World football championship.

As to the compensation of budget loss from tax privileges, even the occurrence of surtaxes in a type of luxury and real estate tax, and also the increase of excise tax, won't satisfy them.

It is known, that the struggle against crisis led to the increase of the rate of social payments to 34 %. Then it was lowered to 30 %. But such changes bear only negative consequences. Tax system should be accurate, clear and predicted. The uncertainty prevents business to make investment plans.»

On the basis: http://www.rg.ru/

Andrianova Irina ( the leading lawyer of legal support and banking consulting department of Honest & Bright)