Taxes and tax reform in Russia: description, features and directions

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2018-03-28 03:50:12

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Since 1990, Russia began large-scale tax reform. For consideration in April passed a bill on fees with citizens, foreigners and persons without citizenship. In June, the discussed legislative act on compulsory payments to the budget of the enterprises, organizations and associations. tax reforms

Taxes and tax reform in Russia: regulatory framework

The Key provisions of the current program to collect mandatory payments to the budget were approved at the end of 1991. Then was adopted the main law regulating this sphere. In the regulation were established taxes, duties, fees and other deductions, determined the subjects of their rights and responsibilities. In addition, there have been other laws for specific taxes, which came into effect from January 1992. Major tax reform thus took place in the beginning of the last decade of the last century.

Structure

Reform of the tax system took place with the adoption of more than 20 normative acts. 21st November 1992 by decree of the President was formed independent regulatory body, FTS. This service was assigned a key function in the development and subsequent implementation of the tax policy of the country. Legislation was identified 4 groups fees:

  1. Nationwide. They were established at the Federal level.
  2. Local. They were defined by the territorial structures of power, according to the legislation of constituent entities.
  3. Republican charges, taxes, administrative and national-state formations. They were established by the decision of the government and laws of the respective regions.
  4. Compulsory Republican and local fees and taxes.

Part of the contributions are periodically changed in accordance with the decisions of government agencies. tax reform in Russia

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First problem

Held in the most extreme conditions, tax reform in Russia has failed to ensure the creation of an ideal financial institution. In the course of subsequent market reforms, its flaws became more noticeable. In the end, the tax system has become considerably slow down the growth of the economy. The key problem at that time was the budget deficit. It was due to the small volume of revenues to the Treasury on the background of significant expenditure commitments.

Changes

By 1997, the country was installed more than 40 types of fees and taxes that were paid organizations and citizens. By this time was formed a three-tier structure. She included:

  1. National fees. They were levied throughout the country at uniform rates for each type.
  2. Republican taxes, fees and charges of the administrative-territorial and national-state formations.
  3. The Local contributions to the budget. directions of tax reforms

Second step

The New tax reform started in 1999. It marked the entry into force of the first part of the tax code. It should be said that the Code had been discussed long enough. In the General part established the responsibilities and rights of subjects, regulated the process of implementation of obligations to the budget, determined the rules of control, responsibility for violation of tax legislation. In addition, we introduced the most important instruments of the Institute. Thus, the Code reflected the main aspects of tax reforms. To ensure the implementation of legislation was developed and coordinated more than 40 normative documents. The most important result of that period was the statement of forms of declarations and instructions for their preparation. However it should be noted that while the document passed through the Duma, he lost a lot of innovative proposals. The mechanisms and rules was in fact far from perfect. In this regard, over the last few years in NC was introduced a lot of amendments. taxes and tax reform in Russia

Conversion since 2000

With the beginning of the 21st century the Government has taken several decisive steps to change the situation in the financial sector of the country. Was elaborated the priority directions of tax reforms in the medium term (until 2004). First, it was assumed:

  1. Decrease the excess load on the subjects, which formed the preconditions for the evasion of the mandatory amount.
  2. The Weakening of fiscal control of the state in favor of stimulating functions of the tax system.
  3. To Ensure uniform distribution of the load on the payers.
  4. Reduce the number and change the direction of the established tax incentives.

In the sphere of interbudgetary relations, the government focused on redistribution of income in favour of the Federal budget on regional. the main aspects of tax reforms

Goals of tax reform

They are not is to collect as many payments to address the fiscal crisis. A key challenge today is the reduction of seizures by decreasing government commitments. Tax reform focused on the establishment of a just order of charges with entities operating in various economicconditions. Approved programmes of the state financial policy assume a higher level of neutrality. Taxes should not significantly affect relative prices, the process of creation of savings and so on. The result should be reduced costs for the execution of the law not only for States but also for the payers.

Subsequent conversion

To implement the above objectives of tax reforms in the country was continued. In particular, since January 2001, was introduced 4 chapters of the second part of NK:

  1. VAT.
  2. Excise tax.
  3. Pit.
  4. UST. tax reform for consideration

The Subsequent tax reform of 2005 assumed:

  1. Reducing the burden on the PAYROLL. It was planned to be achieved through the reduction of the UST rate. It was assumed that for income up to 300 thousand rubles. it will be reduced to 26% from 300 to 600 - up to 10 %, more than 600 up to 2 %.
  2. Change mode of charging VAT. It was envisaged that the rate will be reduced to 16 %. In addition, the tax reform involves the revision of the return collection exporters. In addition, actively discussed the possibility of granting to payers of electronic invoices.
  3. Changing property taxes. It was supposed to replace the existing charges for the deductions from real estate. This practice was, in particular, introduced in the Tver region.
  4. The Establishment of a preferential regime for companies operating within special economic areas. This would have provided the innovation and investment activities.

The Processes for collecting and monitoring

Tax reform focused on flexibility and transparency, simplification and reduction of volume of document circulation. Implementation of the tasks provides for a reduction in load not only in fiscal and administrative part. In particular, it is about reducing costs to the payer for the execution of the law. As shown, reducing the tax burden on some of the taxes passed along with a simultaneous increase in the administrative burden. In particular, the increased volume of financial statements complicated accounting activities of the payer, increased control of government agencies. In this regard, steps have been taken:

  1. Change the structure of the Supervisory bodies.
  2. The Development of information technology.
  3. Improve management techniques. new reform

Conclusion

The results of reforming the system of taxes and fees are evaluated as positive. In the period from 2000 to 2003, the share of the load of the GDP gradually decreased from 34% to 31 %. The result of these activities, there has been a significant change in the structure of revenues. In the first place significantly increased the share of payments related to subsoil use. Along with this decreased revenue from enterprise profits and personal income tax has increased almost in half. There is a high proportion of fees intended for social, medical and pension benefits. Their level is within 25 %.


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Alin Trodden - author of the article, editor
"Hi, I'm Alin Trodden. I write texts, read books, and look for impressions. And I'm not bad at telling you about it. I am always happy to participate in interesting projects."

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