Dmitry Medvedev, Deputy Prime Minister Arkady Dvorkovich and Minister of economic development of Russia Maxim Oreshkin (left to right) at a meeting on economic issues
Photo: Yekaterina Shtukina / TASS
The government has postponed the discussion of tax reform is to simultaneously increase VAT to 22% and reduce insurance premiums to the same level, write “Vedomosti”. While the question was still included in the agenda
The government once a year will not discuss tax maneuver “22/22” — the VAT increase to 22% and lower premiums to 22%. About this “Vedomosti” told three Federal and one senior official.
This decision was taken on 12 April at a meeting with Prime Minister of Russia Dmitry Medvedev. One of the officials warned that the agenda of the bill is not removed, despite the postponement.
Another source, on the contrary, says that discussions will continue, in his words, Russian President Vladimir Putin instructed this year to discuss tax proposals, and in 2018 to accept them. He claims that at the meeting the government has agreed that the maneuver should be implemented, but no specific instructions. Thus the next step will be a discussion of the full package of tax changes.
Another official explains the contradiction that, for those who maneuver like, I think that it generally endorsed. Therefore, the new tax rate would apply in 2019. Others believe that, on the contrary, it was decided to continue the discussion about the necessity of the tax maneuver in two years.
According to “Vedomosti”, the meeting at the Prime Minister decided that it is too early to discuss this reform, which was the target option of the forecast of economic development for 2018-2020. Earlier the Minister of economic development Maxim Oreshkin called this forecast a realistic scenario.
One of the officials claims that the issue, even informally, was not discussed with the President. The Federal official says that the tax maneuver should be done in the context of other reforms. Another interlocutor of the newspaper agrees and believes that now it is better not to spend time on tax reform.
Another source of “Vedomosti” has expressed confidence that to make a decision on the tax maneuver” will have other people, because no one is willing to take responsibility for such a political move.
22 22%: how the Finance Ministry hopes to improve the economy of the tax maneuver
A discussion of the tax maneuver, “22/22” continues for several months. In mid-March, Finance Minister Anton Siluanov has proposed to increase VAT to 22%, and together with the lower insurance premiums to the same level. He said that contributions should be lower to reduce the informal sector in the economy. According to Finance Ministry estimates, the increase in VAT will cause a one-time “contribution to inflation” at 2 percent.
Deputy Finance Minister Vladimir Kolychev explained that such a tax reform should help to reorient the tax system that it has led to more rapid and sustainable economic growth. Secondly, it will, in his opinion, to create equal competitive conditions and to rehabilitate the market of “non-violent” way.