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What should we expect from the Unified Social Tax in 2006? Will it be exchanged for private insurance?
 28.12.05 In the last days of 2005, the Committee on Work and Social Policy of the State Duma has begun to draft a bill that would replace the Unified Social Tax with payments to private insurance companies.

ACG commentaryThe bill is expected to be debated on the Duma floor in 2006.
For now, the bill is expected to move the responsibility for payment of certain social services, such as basic pensions and aid given to assist in childbirth, from the Unified Social Tax to the Federal Budget.
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Employers will have the right, upon the agreement of the trade unions, to privately insure their workers to within the limits currently covered by the Unified Social Tax. Thus, payment will be made not to the state, but to insurance companies. The only requirement set for the corporations who might provide this insurance is that they offer a full-coverage package.
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