Thursday, September 18, 2014

Government refused to introduce a sales tax – RBC

Government refused to introduce a sales tax – RBC

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The government has abandoned the idea of ​​returning the sales tax (EPT), the head of the Ministry of Finance Anton Siluanov.

«We have done without raising taxes, without increasing the tax burden, which is very important. Sales tax we have not considered as a tool for increasing tax revenues of the Russian Federation “, – said Siluanov reporters after the cabinet meeting, which discussed the draft federal budget for 2015-2017 years.

The Minister explained that the government approved law on the federal budget for 2015 and the planning period of 2016-2017 with the utmost level of deficit for next year of 0.6% of GDP. Budget revenues in 2015, according to the bill amount 15082000000000 rub. (19.4% of GDP), expenses – 15.513 trillion rubles. (20% of GDP), the deficit – 430 billion rubles.

Earlier today, the committee chairman Andrei Makarov said that the latter, for the Cabinet in the State Duma a package of amendments to the Tax Code of the NRS is not mentioned.

«To date, the government’s decision – that we do not pay tax “- said the head of the Budget Committee. Amendments to the Tax Code, he said, should be considered before entering the State Duma draft federal budget for 2015-2017 years. The government should introduce a draft law to the lower house of parliament before October 1.

The draft law on the introduction of Russian sales tax has been developed by the Ministry of Finance and in the middle of August 2014 submitted to the government.

It has been reported that the law should come into force on 1 January 2015, after which the regional authorities would be able to impose on goods and services tax at a rate of up to 3%. According Siluanova, it would increase the incomes of the regions up to 200 billion rubles.

Against the tax return made by the representatives of business. The Russian Union of Industrialists and Entrepreneurs (RSPP) stated that the adoption of the law will lead to a reduction in production, higher prices (representatives of retail chains overall increase of at least 3%), a decline in demand for taxable NSP products and services, as well as hit the competition , as some companies will try to evade.

In the RSPP stressed that the tax return will not solve the problem of shortage of regional budgets, as tax receipts will be concentrated in the economically successful regions, with a high turnover of retail trade.

«Our position is that we are opposed in principle to this particular tax, “- said later chairman of the Association of Retail Companies Ilya Yakubson. According to him, the business is more than willing to raise the personal income tax or VAT, than the introduction of a new tax to be administered by separate rules.

«According to our experts, the proceeds from the sales tax and other taxes in the aggregate will be smaller than before its introduction, because of the business go into the shadows. This is true even of Moscow “, – said Yakubson.

In early September, the first deputy chairman of Russia Ksenia Yudaeva urged the government to be careful approach to decision-making that could lead to higher inflation, and not to provoke the Central Bank to tighten monetary policy .

«We would like to take account of taking such decisions and their impact on overall inflation and held them in such a way as not to lead to a spike in inflation, not to affect the medium-term economic expectations, and if you want to not provoke us to a policy that is required in terms of inflation, but it can be harmful in terms of economic growth, “- said in an interview on Yudaeva” Russia 24 ».

One of the measures that can lead to an acceleration of inflation, it is called today the introduction of a sales tax.

September 11, 2014 the newspaper “Vedomosti”, with reference to federal officials and members of the presidential administration reported that Russian President Vladimir Putin at a meeting on Wednesday approved a proposal to return the sales tax, leaving the final decision to the Prime Minister Dmitry Medvedev.

«Information about what the President has approved the introduction of a sales tax, is not true,” – said in the same day, Putin’s press secretary Dmitry Peskov.

Earlier in the Russian tax Sales were entered twice. The first time it occurred on 1 January 1991, when the NRS was replaced by VAT. NSP rate was then set at 5%, and the main goal of his administration, it was announced financial support for programs to support the poor, as well as stabilization of the monetary circulation.

Since 1 January 1992, entered into force a law “On the basis of the tax system in the Russian Federation “, in which the NRS was not mentioned. De facto, it was replaced by the value added tax.

The second time the sales tax was introduced in Russia in 1998. Regional authorities were given the right to decide on the introduction of IPV in their territory, as well as set the tax rate in the range of 0 to 5%. As a result, in most regions of the tax rate was set at 5%.

The object of taxation NSP recognized only if the cost of goods and services sold at retail or wholesale cash. Proceeds from collection of the NRS region shared between the budget and local budgets in the proportion of 40 to 60.

In January 2003, against the NRS made the Constitutional Court. In the COP noted that sales tax violates the rights of individual entrepreneurs, who are obliged to pay it regardless of whether they purchase goods for cash or pay for them in non-cash form, whereas the usual legal entities in the case of payment for goods by wire transfer taxes do not pay that violates the constitutional principle of equal tax burden.

From 1 January 2004 the NRS was canceled.

Eugene Kalyuk

September 18 2014

RBC

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