29.12.08

A new federal law, which has just passed its first reading in Russia’s Duma, would boost the income of Russia’s regions. The maximum 20% profit tax, is currently split between the federal government and regional governments (an 18% tax goes to the regional budgets, and a 2% tax to the federal budget). The draft bill would shift this breakdown more to the regions’ favor (18.5% and 1.5%, respectively). 

In addition, taxes on gasoline in various forms would go entirely to regional governments (currently 60% of the tax does). 

The proposed measures would increase regional budgets by a total of 102.5 billion rubles. It is meant to compensate for losses incomes from other changes to tax legislation.

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