Rus News Journal

The Ministry of Finance the first deputy of the Minister of Finance of the Russian Federation Sergey Shatalov recommends to lower the VAT rate in 3 years

At a briefing on January, 30th has informed that at session of board of the Ministry of Finance the decision to recommend to the government to lower the rate of the VAT to level 15 - 17 % since 2006
was accepted As transfers ITAR - TASS, as he said, it is supposed to keep and the preferential rate at level of 10 %, the list of production assessed on the preferential rate however is thus planned to reduce. Level of the general rate will be definitively certain by the government.

Shatalov has noticed that in a case decrease in the rate of the VAT to level of 15 % of loss of the federal budget will make nearby 220 mlrd roubles.

he also has informed that the decision on cancellation of the tax from sales since January, 1st, 2004 is definitively confirmed By estimations of the Ministry of Finance, the sum of losses of regional budgets can reach 70 mlrd roubles if not to consider the new mechanism of the taxation of the small-scale business, come into force with this year, and also transition to payment of the made tax for a number of categories of tax bearers.

Shatalov has noticed that it is not supposed to compensate completely to regions the sum of dropping out incomes in connection with cancellation of the tax from sales. As indemnification under property taxes, and also 40 % of excises receipts can be transferred to oil products to regions.