PRESS: Govt resumes discussion to cut payroll tax to 23-25%

MOSCOW, Feb 11 (PRIME) -- The Russian government has restarted discussion to reduce the payroll tax to 23–25% from the current 30% to raise the share of the legal labor market, wages, to boost the economy and increase its competitiveness, business daily Vedomosti reported on Tuesday, citing government officials.

A lower payroll tax will cost the state coffers 1.2–1.75 trillion rubles, depending on the size of the reduction.

The source of compensation for the lost income is unclear. Two government officials said that no growth of value-added tax (VAT) or introduction of a sales tax is planned.

A source said that a reduction of incentives for oil companies can partially compensate the gap.

(63.7708 – U.S. $1)

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