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
“We need to stay the course of drastic simplification of tax return preparation. In particular, we need to reduce the volume and complexity of the paperwork and the number of inputs. We also need to radically simplify the maintenance of tax records and bring tax calculations as close to accounting rules as possible.”
“I firmly believe that our tax system should ensure the interests of the state. <…>The interests of the state consist not only of collecting taxes but also ensuring comfortable working conditions for taxpayers. Our fiscal instruments should stimulate economic activity, not suppress it. And we certainly need to (I believe some things are just obvious) move toward reducing the number of required reporting documents.”
“Clearly, our economy needs a decisive shift in terms of taxation. It needs a modern taxation system. We should also think about streamlining taxes that contribute to high-quality economic growth.”
“My personal opinion is that we can meet social obligations only on the basis of economic growth, and that economic growth requires light taxation, efficient taxation as well as the implementation of budget obligations for people in need of support. It is necessary to ensure national security, defence, healthcare, education, pensions etc., because all this requires budget funding. But this also means that we should think about making this taxation less burdensome and more efficient, that’s certain.”
“You play an important role in the work to establish a competitive business climate in the country. As such, you should develop a constructive dialogue with taxpayers and should handle the issues that arise in a considerate and thorough manner; you should help businesses and citizens have a good understanding off the intricacies and novelties concerning taxes, and not persecute them for minor errors. <…>This work should be based on respect for the rights of the conscientious taxpayer and the protection of their interests.”
“We have a package of tax preferences in the economy, including simplified taxation of small business. Today, the tax burden on it is about 10% on average. The decisions that will relieve all healthcare and educational institutions of tax on profit entered in force the other day. This opens up broad opportunities for the flow of investment into these spheres and for launching projects based on public-private partnership.”
“We have settled such a sensitive issue as tax control on transfer pricing. The relevant amendments to the Tax Code will become valid on January 1, 2012. They will help reduce to a minimum the opportunities for unjustified reductions of the tax base and tax evasion. Moreover, tax revenues to the budget will be distributed more evenly – taxes will remain where companies pursue their main economic activities.”
“I consider the practice of tax rebates to be a big achievement as well and we must continue it. I’m referring to the right of all citizens to recover part of their income taxes if they had to pay for housing, medical treatment or education. These sums are not small – every year about 2.5-3 million people request tax rebates and the total payments reach about 50 billion roubles.”
“First, tax inspections need to be as convenient and comfortable as possible for people and economic players. Second, we should strengthen the stimulating role of the tax system, primarily for the purpose of structural modernisation of the economy and the social sphere, and for supporting innovation. The fiscal burden should be distributed more fairly across various sectors of the economy. And third, we must ensure stable tax deductions at all levels of the budget system, from the federal down to the municipal level. <…>Finally, the fourth aim is to guarantee the predictability and stability of the tax system as a major condition for implementing long-term plans of national strategic development”.
“The government’s policy is to consistently increase our treasury’s revenues, not only by increasing the overall tax burden on people and economic players, but also by improving the quality of tax administration, encouraging economic development and ensuring the necessary rate of economic growth, thereby expanding the tax base.”
“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.”
