Siluanov: taxes in Russia not be changed in next 6 years

Siluanov: taxes in Russia not be changed in next 6 years

Russian government will not change the tax regime during the next six-year period, First Deputy Prime Minister, Finance Minister Anton Siluanov said on the sidelines of the 2018 St. Petersburg International Economic Forum.

"The state should create stable conditions. First, it includes taxes. We are talking about not changing taxes in the next six-year period," TASS cited Siluanov as saying.

The minister explained that they plan to lower taxes which have a negative impact on business, as well as simplify the procedure governing relations between a large number of small business owners, self-employed or individual entrepreneurs and those working in the grey economy with the state.

A professor of the RANEPA Chair of Economics and Finance of the Public Sector, Lyudmila Pronina, speaking to a correspondent of Vestnik Kavkaza, noted that t is unlikely that the government will refrain from increasing the tax burden for such a long period. "Previously, the conceptual changes in the tax system were announced, they discussed various tax maneuvers, including on VAT and insurance premiums. The draft law on reducing the excise taxes for gasoline and other fuels by 20-30% has been practically prepared, which will make it possible to contain the growth of logistics costs and, consequently, the growth of commodity prices. Most likely they will neither introduce a progressive scale nor increase the rate. At the same time for the extractive industries, especially oil and gas ones, the laws clearly state a gradual increase in the severance tax. In terms of oil, a tax increase of 498 rubles per ton was laid by 2020. The customs duty on oil exports is likely to be increased as well," she predicts.

"In addition, the government may increase the tax burden on businesses through other mechanisms, including through insurance contribution rates. Now the tax code includes insurance contributions to budget funds - the Pension Fund, the Social Insurance Fund, the Federal Compulsory Medical Insurance Fund, and it is possible that they will be increased. Other expenses related to the property, as well as a fee for its maintenance, rent and sale, will be also increased, although there are chances to reduce certain costs. First of all, I mean the recalculation of the property cadastral value - the coefficients will be changed for a more accurate cation of cadastral value," Ludmila Pronina drew attention.

"Please note that since last year the tax burden on the processing sector, including food processing, has increased by more than 10% due to the increase in excise duties. Even if excise taxes for fuel are reduced, others will continue to grow, especially on alcohol and tobacco products. The situation looks better for small business: entrepreneurs either pay a single tax or work under a simplified procedure. As a matter of fact, we already have thousands of programs to support small and medium-sized businesses, but it is still difficult to understand when and how they will be implemented," the professor of the RANEPA Chair of Economics and Finance of the Public Sector concluded.