PRESS: Russian government abandons tax reform plans

MOSCOW, Dec 12 (PRIME) -- The Russian government has abandoned an earlier discussed idea of tax reforms, business daily Vedomosti reported on Tuesday, citing a government report to the president.

The Finance Ministry earlier offered two tax changes: a zero export duty on oil with an increase of the mineral extraction tax (MET) and a reduced payroll tax in exchange for growth of value-added tax (VAT).

Several government officials told Vedomosti that tax changes will probably be discussed by the new government after presidential elections and that some measures to raise the state income by raising taxes on the population are being discussed. Russia may need to boost state budget spending if it follows a strategy by Alexei Kudrin, chairman of the Center for Strategic Research board, including an increase in healthcare and education spending.

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