. Last Updated: 07/27/2016

Tax Amnesty

The government's realization -- already apparent to everyone else -- of the need to reduce the tax burden has finally materialized in the president's [tax-reform] decree.


From [May 20] the State Tax Service will cease to fine those enterprises that are behind in their federal tax payments.


But will a one-time amnesty really be able to change the situation for producers and tax collectors?


Obviously, no. The president already tried something of the sort at the beginning of the year when he issued his decree on restructuring tax obligations. The experiment did not bring about any significant financial improvements for businesses, and moreso did nothing to prevent the budget's spring revenue crisis.


If the amnesty really is an attempt to reduce the tax burden, it is a reduction that will turn out both inequitable and unjust in practice.


There are those businesses in the country that have been paying their taxes in a timely manner. The decree indirectly suggests that these law-abiding businessmen have been shortsighted, all the while awarding an unfair advantage to those who pay later (with cheaper rubles) and without fear of fines.