Tax maneuver, which was discussed in the government (the reduction in the rate of insurance contributions and the VAT) must solve two major problems of the Russian economy, told reporters Deputy Finance Minister Vladimir Kolychev. First, the maneuver must help reorient the tax system to contribute to the goals of economic policy, for example, faster and more sustainable growth. Now, according to the Deputy Minister, but rather sharpened by the fact that to provide certain social obligations of the state pension, health — especially in terms of direct taxes.
This system for the last 10 years have led to an adverse spiral when the balance of the insurance system have to raise the tax burden on the formal sector. Conscientious company can not withstand this load, a growing proportion of the informal sector in the economy. Because of this insurance system become unbalanced, and this leads to another increase the burden on the formal sector. “If you look at the difference in the operating margin of companies that are completely white and company, which in varying degrees, informal practices are used, the average difference can reach 40%”, — said Kolychev.
The second objective of the tax maneuver — the creation of equal competitive conditions, “non-violent” whitewashing the economy. The whitewashing experience in other market segments shows that the rigid administrative methods often lead to significant consequences for the economy. “We’d like to see the cost of switching from informal to formal practices were minimal. The whole point of the tax maneuver, everything else that is discussed is the indirect effects. We structure tax maneuver so that the negative indirect effects was minimal, and positive — maximum,” — said the official.
The effects of budgets
Tax maneuver involves an increase to the 22% standard VAT rate (currently 18%). The same applies to insurance premiums — all VAT exemptions and premiums will continue, assured in the Ministry of Finance. According to calculations departments, reduced rates of insurance contributions will lead to a drop in revenues of extrabudgetary funds in the amount of at least 1.4 trillion rubles., and the VAT increase will bring additional budget revenue of 1.2 trillion RUB the Gap of 200 billion rubles. will be offset by budget savings in insurance premiums from the salaries of state employees. The budgets of the regions will have the greatest positive effect — increase savings by reducing insurance premiums from the salaries of healthcare workers and teachers.
The contribution rate is not only reduced, but uniform: all insurance premiums will be made one payment. “Then the payment is allocated between the funds in accordance with the volume, in absolute terms, which would have funds, if the maneuver was not. That is so desbalanceada only Pension Fund”, — said Kolychev. The negative effect of the Federal budget would translate into growth of the transfer of the FIU, he said, but this may be offset by reduced subsidies. “We have subsidies to the budgets for wage increases within the framework of the execution of the may decrees. Because the actors are significantly to save, a portion of these subsidies actuality your will lose”, — said the Deputy Minister.
For the Federal budget tax maneuver “2222” would be neutral, said Kolychev: the budget does not receive additional revenues, reduction of insurance premiums kompensiruet revenue flow for VAT. Burden on the private sector — households and the corporate sector is also not changing, only its structure. “If we make the assumption that this is inflationary and will affect incomes negatively, after all the indirect effects, you thereby say that it will positively affect corporate profitability,” — said Deputy Minister of Finance. Option which was discussed earlier — “21/21”, for a budget neutral was not, led to a greater loss of revenue, he explained.
Tax reform will give the government a greater positive effect on the economy if accompanied by measures to increase the supply in the labor market, according to the Ministry of Finance. To perform such reconfiguration of the system must, inaction, in the opinion of the Department, may lead to the growth of the informal sector, and this will lead to a reduction in tax revenues, especially regional: “gray” wages not paid personal income tax and insurance contributions. Maneuver, explain in the Ministry of Finance, need not to aggravate the situation: the current system leads to the fact that there is a rate increase with the taxes of the poor collection rates, and that is deteriorating. While the budget estimates laid effect from the whitening of the economy: the result will be neutral if the current share of informal sectors will remain at current levels.