VLADIMIR PUTIN
ARCHIVE OF THE OFFICIAL SITE
OF THE 2008-2012 PRIME MINISTER
OF THE RUSSIAN FEDERATION
VLADIMIR PUTIN
ARCHIVE OF THE OFFICIAL SITE
OF THE 2008-2012 PRIME MINISTER
OF THE RUSSIAN FEDERATION
VLADIMIR PUTIN
“As for our tax policy in general, we will not be increasing the fiscal burden. The government’s goal is to ensure a fairer distribution of the tax burden. This is why tax changes will concern, above all, the industries that work in a favourable foreign policy environment.”
“Amendments to the Tax Code will soon be adopted. Revenues from patents will be almost completely passed on to municipalities – some 90% of them, to be exact. According to preliminary estimates, efficient use of the patent system can help local authorities attract billions of roubles, which is tens or even maybe hundreds of times more than what they currently have. So, municipalities will receive a powerful tool with which to replenish their budgets.”
“We need to make the necessary amendments to the Tax Code to protect the state's interests. Of course, this must be done extremely cautiously, carefully, following the well-known medical rule – do no harm. We need to make such amendments absolutely transparent, uniformly understood and, most importantly, consistently applied to all economic actors.”
“The tax service is not a body that makes money, but one that takes it away. And yet, any rational person understands the important role the tax services play in any economy and any state. It is important, of course, that the legislative, legal, and regulatory framework of the tax service has been properly developed. But how the process of administration is organised is no less important. I want to thank all the employees of the tax service for their work.”
“Our approach is to avoid a general tax increase. For example, the corporate profit tax rate remains low (20%). On the other hand, social security premiums will grow in 2011. We have no other choice but to raise premiums because we need to pay good pensions to our senior citizens and we need the funds to modernise the healthcare system. But even in these circumstances we found a way to keep social security payments lower for IT companies, residents of innovation zones, media companies and small innovative enterprises established at universities.”
“We find it unreasonable to increase taxes, taking into account that pensions and other social contributions will rise in 2011. However, we find it possible to increase the financial burden on those economic sectors which have enjoyed low tax rates for a long time and which enjoy high global prices. The revision of tax rates will be connected with the growth of budget spending in the priority areas that have already been mentioned.”
“It's easy to understand the desire of local governments to set the land taxes as high as possible, because the proceeds go to the municipal budget. However, this all too often increases the tax burden on businesses and hampers long-term investment projects. Thus, local governments gain a rouble today to lose dozens or perhaps even hundreds of thousand roubles tomorrow as they rob themselves of potential tax revenues. So I call on our colleagues to be more flexible about land taxation, lower rates to support social projects, small and medium-size business initiatives and innovative industries.”
“Tax policy is one of the most important instruments we have for reaching long-term goals. Today we must finalise our plans in this area for the next year, that is, endorse a tax package designed to encourage innovation in the real economy. It compensates for the rise in tariffs on mandatory social insurance for high-tech companies. As we agreed, during the transitional period we will retain the 14% rate for residents in technology development special economic zones, software manufacturers, and innovation and research companies at higher educational institutions. Reduced rates will also be in place for the media until 2015. It also envisages changes in the rules regarding depreciation, specifies procedures for the calculation of R&D expenditures, a reduction in the number of documents required to prove eligibility for the zero VAT rate on exports and the three year-long exemption of new energy efficient equipment from corporate property tax, and so on”.
“We also have a system of patents for small businesses. The entrepreneurs who purchase patents at fixed prices will be free to do business with a minimal level of accounting standards and other administrative burdens and barriers. This fiscal arrangement is the most convenient for business, and so deserves to be expanded.”
“Last but not least, educational, research, cultural and healthcare non-profit organisations should be exempted from the profit tax, which will give them considerably more leeway to do their jobs. And in future, we may transfer some budget-funded contracts to NGOs. Experience has proved that this measure encourages competition to provide public services and improves such services.”
