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. Last Updated: 07/27/2016

Pochinok: New Code Will Ease Taxes

The current draft of Russia's government-proposed new tax code would ease the tax burden by 1.5 percent of gross domestic product, Alexander Pochinok, head of the State Tax Service, said Monday.

Pochinok was quoted by Interfax as saying that, unlike a previous edition, the draft code introduces rigorous measures for levying value-added and profits tax.

But despite revisions made by the government to the code, Pochinok predicted problems with the document when it is debated in the State Duma, the lower house of parliament.

He said deputies were likely to fault the document in relation to the agrarian, banking and oil industries, and for apparent conflicts between the federal government and regional administrations.

But Pochinok said the document was still likely to be adopted by June.

Once it becomes law, the government plans to implement the new tax code in stages, starting with excise duties, followed by VAT and profits tax. Finance Minister Mikhail Zadornov said last week that it should thereafter not require any major changes for five years.