Russia Tax

This is especially secure property rights, its legal protection, availability of credit, low interest rates, low taxes. The level of taxation, ease and convenience of the tax system is essential for the competitiveness of its economy, its investment climate and level of economic freedom, the necessity of a just Dmitry Medvedev said in his speech in Krasnoyarsk. The lower tax rate than the more favorable investment climate. The higher tax burden, the less level of economic freedom. At the same time raising taxes can be a tool for treatment of "overheating" economy. First, create a normal tax conditions for industrial development, to large-scale tax reform and then to enjoy the fruits of its development - job creation and large-scale additions to the budget. This was also indicated by the successful experience of China, previously successfully used tax incentives for further development. So why should reduce the VAT rate may compensate for its loss of other taxes? In order to 1) improve tax collection, expand the tax base by reducing the volume of transactions tax planning, business exit from the "shadow", and 2) to make the economy more transparent and legal, which is essential for its normal development, fundraising, etc., and 3) to stimulate economic growth, create the conditions for a permanent increase in the tax base in the future, and 4) improve the investment climate, increase the inflow of capital into Russia, 5) improve the competitiveness of our products before entry into the WTO, and 6) lower corruption, and 7) to create incentives for innovation and not the commodity sector; 8) to support the stock market. It seems that the introduction of VAT in 1992 to prohibitive levels - at a rate of 28% (reduced to one year 20%) put the economy in a state of shock and caused the widest distribution of "shadow" operations. These circumstances gave rise to the prerequisites for creating a highly profitable industry, "tax planning" associated with corruption.