Minister says government not to raise tax burden in Russia

MOSCOW, Mar 22 (PRIME) -- The government does not plan to raise the tax burden in Russia, but intends to increase collection of existing taxes, Finance Minister Anton Siluanov told President Vladimir Putin on Thursday.

“We are talking about the fact that on the whole the tax burden will not be increased, we say that we will work in terms of improving tax collection,” Siluanov said.

The Russian government is currently preparing proposals to change the tax system. Deputy Prime Minister Arkady Dvorkovich said earlier on Thursday that he did not rule out raising the personal income tax.

The Finance Ministry is preparing proposals on revision of incentives and preferences, Siluanov also said.

“We are preparing proposals on revision of incentives, preferences, on how they worked. When we were introducing them, we were expecting some certain effects,” he said.

“After analyzing them – we already have such developments now – we will be able to offer the government to once again consider feasibility of keeping these or those incentives.”

Under its tax innovations, the Finance Ministry is preparing proposals on creation of equal conditions for making business, Siluanov also said.

“Under our tax innovations we are certainly preparing proposals on creation of equal conditions for making business in order to decrease a number of tax evasion cases and to raise and improve collection of taxes. And with the help of this – and this is a big resource – we will be also able to finance those tasks that were put for us in the address (Putin’s address to the Federal Assembly),” he said.

The government will soon consider the ministry’s proposals in the sphere of taxes that will allow enterprises to raise their profit and resource base, the minister also said.

The Finance Ministry will raise budget spending on infrastructure projects and also plans to develop guaranteed state support for attracting private investments, Siluanov said.

“Of course, this is first of all infrastructure, support of infrastructure projects as a source of economic growth. This is of course a priority of healthcare, education – all that, as they say, form human capital.”

The ministry has proposed increasing spending on healthcare through redistribution of expenditures inside the budget, Siluanov also said.

He also said he believed the government should provide financial aid only to those in need, so that people with low incomes could feel significant support.

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