03.12.08

According to the Russia's Ministry of Finance, the tax reforms as proposed by Prime Minister Vladimir Putin in his speech at the Tenth United Russia Party Congress, will cost an estimated 556 billion rubles in lost tax revenue.

"For the 2009 tax year, profit taxes would be reduced by 400 billion rubles, taxes on small businesses decreased by thirteen billion rubles, the increased depreciation bonuses of up to 30% will cost an estimated 100 billion rubles, while the increase in personal income tax deductions for home purchases will run 43.6 billion rubles," - said a representative of the Ministry. The total cost is about 556 billion rubles, he noted.

Vladimir Putin announced a number of anti-crisis decisions to support the Russian economy. In particular, it is expected that the tax rate for small businesses, the federal portion of the profit tax, will be lowered. The deduction to personal income taxes for purchasing a home will be doubled to two million rubles.

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Source: RIA Novosti