The Increase in the Tax Burden Moratorium

This is the basic principle contained in the "Main directions of tax policy for 2016 and the planning period of 2017 and 2018", which were published by Ministry of Finance of the Russian Federation. The department determined how the treasure will be replenished in a decreasing economy conditions. "The Rossiyskaya Gazeta" writes about it.

The government's priority will prevent any increase in the tax burden on the economy during the next three years. Such proposals will not be made by the Government of Russia, as well as other subjects of legislative initiative in the State Duma, and will not be supported. According to the Government, de facto moratorium on the increase in the tax burden in the current 2015, and in the next three years should ensure the stability of the tax system and increase its attractiveness for investors.

This decision was due to the fact that the increase in the tax burden on the economy in recent years has ceased to have the effect of increasing the revenue. Revenue growth in the government treasure achievement is supposed now by means of the tax base expansion. First of all there is activation of investment in the economy.

Traditionally, innovations affect direct taxes on individuals in the least degree. The main change in the coming years – is the gradual replacement of the land tax and personal property tax on the property. In general, it will increase the paid amount by the owners of land and premises. But, as noted in the Ministry of Finance, it would be fairer at the expense of variety of tax benefits.

The main part of innovations concern business. This includes income tax reduction for new investors, and "tax holiday" for new entrepreneurs, engaged in science or industry. It also assumes the benefits for companies which have concluded with the local authorities “investment contracts” provided for in the new law on industrial policy. Ultimately, all of these measures should lead to increased business activity and the recovery of Russian economy.