14 Mar 2011 13:38

Econ Ministry proposes lower insurance fees for SME with higher alcohol, tobacco excise

TOMSK. March 14 (Interfax) - Russia could reduce the insurance fees for small and medium enterprise to 14% from 25%, Economic Development Minister Elvira Nabiullina told journalists in Tomsk on Monday.

The proposal, which is currently being discussed with the Finance Ministry, will be submitted to the government in the near future, she said.

"The proposal would reduce the rate for small business to 14%," she said.

The reduction would not apply to small business in the real estate, retail and finance sectors, she said.

The revenue would be made up with an increase in excise taxes on alcohol and tobacco. "We are proposing a gradual increase in excises beginning in 2012," she said.