Monday, April 6, 2009

MEDT Kudrin has offered to reduce taxes on business.

Ministry of Economic Development has developed for the Vice-Premier and Finance Minister Alexei Kudrin, a package of fiscal crisis, writes the newspaper Kommersant. As stated in the letter from the Minister of Economic Development Elvira Nabiullina, it is necessary to postpone the reform of UST (unified social tax), as well as reduce the tax burden on Russian companies.
In particular, it is proposed to facilitate the activities of small businesses using the simplified form of taxation. For those companies that pay taxes on profits, it is proposed that the rate in the 0-10 per cent (5-15 per cent currently), and for paying taxes on earnings - in the 0-4 per cent (now - 6 per cent).
Also, the Ministry calculated that because of the reform of UST in 2010, pressure on wages will grow by 36 percent, and in 2011 - a 42 per cent, writes the newspaper "Vedomosti". Therefore, this reform is proposed to postpone for at least a year.
It was expected that the reform of UST, under which the tax will be replaced by contributions to pension, medical and social funds, held in 2010. The rate of tax is regressive and will be from 26 to 2 per cent, depending on salary. April 2, at several meetings with the Prime Minister of Russia Vladimir Putin had agreed that the contribution rate or amount to 26 per cent, or will be increased by one to two percentage points.

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