Russia Predicts Revenue Collection Fall
At a briefing here in Moscow
on Thursday, the Chief of the Russian Profits Tax department, Karen Oganyan
announced that the Ministry expected a decrease in revenue collection of around
100 billion roubles ($3.3 billion) in 2002 as a result of changes to the profits
tax laws. When the 25th article of
the tax code comes into force in January 2002, profits tax will be reduced from
35% to 24%, a decrease which it is estimated will reduce the tax burden on Russian
businesses and investors by around 2% of GDP. Speaking at a symposium
on 'The Investment Potential of the South of Russia' last week, the Deputy Finance
Minister, Alexei Petrov explained, however, that the reduction in the country's
tax burden would not just come as a result of the profits tax decrease, but
would also be affected by the introduction of the standard international procedure
for calculating the taxable base. According to Mr Petrov,
the new tax code chapter, when introduced, will lift all restrictions on the
deduction of business expenses from the taxable base if they are related to the derivation of profits. .
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