Point of View

“Let me remind you of the main decisions made as part of the tax reform. Fundamental changes have been introduced in the tax administration rules in order to protect the rights of honest tax-payers. The tax burden has been eased, in particular, a flat income tax was set at 13%, one of the lowest rates in Europe. The profit tax, VAT and the Single Social Tax have been reduced. Special regimes have been introduced for small businesses, stimuli have been strengthened for investment in scientific research and innovation, education, healthcare, and housing construction. The taxation system in agriculture has been simplified. Taxes continued to be reduced in the second half of 2008 as an anti-crisis measure. Of course, we will revisit the issue of improving the tax system in the future.”

“In spite of the difficulties with the filling of the treasury it is inadmissible for the tax, customs and any other fiscal bodies to revert to the practice of "terrorizing" business. Their main task must remain the same: monitoring compliance with tax legislation.”

“A bill on streamlining the taxation of householders' societies, housing construction cooperatives and other housing management companies. The bill envisages exemption from value added taxation of housing and public utilities provided by managerial companies in multi-family dwellings. The bill will fill in a major gap in the fiscal legislation, which is presently an obstacle to the emergence of latter-day housing managerial agencies.”

“I suggest a number of other steps. I propose reducing the rate of profits tax by four percent starting January 1, 2009. This should be done at the expense of the federal part of this tax. The amount involved is more than 400 billion roubles and all this money will continue working in the economy next year. Also, 15% is the current fixed tax in the simplified taxation scheme for small business. To further reduce the tax burden on small business, and create more impetuses for its development, I suggest giving regions the right to reduce this rate by 10%, that is, to five percent.”

“Businessmen often complained to me that the tax authorities delay the VAT return. I believe that these authorities should adopt a completely different attitude on this matter, and return the VAT much faster. They could suggest an optimal model for major tax payers. We had such practice before. The current debt on VAT return should be reduced to the minimum before this year expires.”

“I have instructed the Ministry of Finance to suggest measures to support regional budgets. Moreover, considering the special situation with the profits of enterprises in the fourth quarter, I propose they be given the right to pay taxes on the real profits they have received since the start of this year. This decision will allow them not to be taxed on profits which so far exist only on paper. In this way, business will not be crediting the state for free, while the regional budgets will not have to reimburse companies for overpaid taxes at the beginning of the next year. Now I would appreciate your attention! I am asking our deputies in the State Duma to adopt the required amendments to the Tax Code allowing this norm to become valid in a week, starting November 28. This is important because taxes are due on this date.”

Show: 10 / 20 / 50 on each page

4/ 4