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Finance Minister explains new taxes

The planned tax changes for the next six years will be ‘stimulating’: they are needed to stimulate ‘decisions that require support,’ Finance Minister Anton Siluanov said quoted by RIA Novosti.

According to the Minister, the tax system is a ‘living instrument’ that must respond to changes in the economy.

“This is how it happens: we see the need to stimulate certain decisions that require support, through taxes. And I am sure that over the next six years, there will be such stimulating decisions. They arise every year,” the official warned.

At the same time, he promised that the tax environment would remain unchanged for six years; as for the stimulating decisions, the authorities will be taking them from time to time “for certain types of business.” However, the Minister does not believe it will lead to an increase in the overall tax burden. The authorities will simply strengthen tax administration and ensure compliance with the existing tax laws; at present, “certain businesses often attempt to evade them,” he added.

“They mean at least effectively enforcing the tax for the self-employed, something the majority of microbusinesses are evading,” says tax expert, head of the Simplified Tax portal, Nikolai Yepikhin. “By the way, this alone means we cannot say that the tax burden will not grow. On top of that, more new taxes on individuals and businesses may be added disguised as environmental fees, excise taxes, fines, and so on.”

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