5 Oct 2010 14:45

Govt to maintain low profit tax rate, flat individual income tax

MOSCOW. Oct 5 (Interfax) - The Russian government will maintain a low profit tax rate and a flat individual income tax rate, Prime Minister Vladimir Putin said at the Russian Calling! forum organized by VTB Capital.

"The government will not deviate from tax reform principles. It will preserve the positive results. A low profit tax rate and a flat tax on individual incomes," he said.

The decision was made earlier to raise the insurance fees for the payroll fund and the excise taxes on oil products, he said. "That step was dictated by the need to pay decent pensions, improve the operation of hospitals and clinics, build roads," Putin said.

The government has not reduced, but on the contrary is expanding, "the system of tax stimuli for investment and modernization of the economy," he said. A portion of the tax initiatives have already been submitted to the State Duma, he said, mentioning bills that provide tax incentives to companies that introduce energy-saving equipment and reduced tax rates for insurance fees paid by companies resident in technical innovation zones, small innovative companies and the media.