The Finance Ministry is in favour of maintaining the current configuration of tax system of Russia for the next three years. In particular, the Minister Anton Siluanov will urge the government not to change the rates of income and other taxes, at least in 2017. About it as writes the newspaper “Kommersant”, according to project “Main directions of tax policy” (ENP) in 2017-2019.
This week, ONP must be submitted to the Commission on budget projections, together with the final version of the draft budget, and then to the government.
The Ministry of Finance relies in 2017 for new debt and an increase in tobacco, wine and fuel excise taxes. Thus, as discussed in the White house and the Kremlin as an alternative the possibility of increasing the rate of the profit tax and on income of natural persons will remain unfulfilled for at least another year.
According to the chamber, at the beginning of 2016, the volume of outstanding taxes and levies in Russia amounted to 1.2 trillion rubles to 1 trillion rubles of them – it’s bad debt, says the publication.
The newspaper also reminds that the option of increasing personal income tax of assumed growth in incomes over a certain level to 20% with a saving rate of 13% for the most part wages below the median income in Russia, and the option of raising VAT to 20% was discussed in two versions: fast, 2017, and pending – in 2018. The third option suggests a General increase of the national debt through the issuance of OFZ.
Most likely, the final design of the budget that should go to the government meeting on October 13 will be the base variant and is a compromise between the option “the growth of public debt” and the budget projections outlined by the Ministry of Finance in July 2016, the newspaper writes.
It is expected that some reduction in Federal spending will be implemented as a pure cost reduction and by reducing amounts of public procurement due to the rapid fall of the rate of growth of prices. The rest of the office to focus on a point solution to most sensitive issues of tax optimization and improving payment discipline.
So, for large companies and consolidated groups of taxpayers should increase the effective rate of income tax.
The Ministry of Finance will forbid companies to reduce the losses of the previous years base for tax payment by more than 30% of the profits of the current year, the newspaper writes, reminding that the instruction to resolve the issue of refund of excess tax on profits was given by the Prime Minister Dmitry Medvedev at meeting on problems of regional budgets in mid-August.