A Review Of Taxation Regulatory Documents Adoptedin The Period August-September 2014

A widespread controversy raised in the period under review regarding measures of tackling the eff ects of economic sanctions on Russia. In our opinion, decision-making should be based on a comprehensive analysis of potential eff ects of measures proposed by the Russian Government and/or experts. In the period of August to September 2014, the draft budget for 2015 and the planning period of 2016–2017 was drafted on the basis of long-lasting disputes in the Russian Government on the possibility of introducing a sales tax at up to 3% and the delegation of the authority to introduce the tax to the regions, increase in the VAT rate, introduction of a progressive income tax scale1. Considering a possible recession, it was decided not to increase the tax burden of these taxes, which can lead to involuntary weakening of the effective demand. The projections to the draft budget included lifting of limits on the assessment base of contributions to the Federal Compulsory Medical Insurance Fund (FCMIF) (federal budget expenditures on transfers to public social funds were slightly reduced by increasing the burden on manufacturers’ costs on contributions to the FCMIF, thereby making it less scarce as part of the draft for 2015 and 2016–2017 submitted to the State Duma).