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. Last Updated: 07/27/2016

Commission Gives Nod To Tax Code

A Russian government and parliamentary conciliation commission recommended Thursday that Russia's State Duma approve the government's draft of a new tax code.

The Duma, or lower house of parliament, will consider the code in a first reading at its plenary session April 16 if its budget committee also approves it.

Many members of the budget committee are on the conciliation commission.

The government, parliament and foreign investors see the code as crucial for economic growth and a normally functioning economy.

The Finance Ministry said the decision paved the way for the government's version to become law.

"The decision of the commission will to a great extent define the final decision of the Duma," Deputy Finance Minister Mikhail Motorin said.

He said the Duma was likely to pass the first, most general part of the code through all readings before summer holidays in July. It could also pass several chapters outlining specific tax issues in two of three required readings by then, he said.

"This will set a base for considering the 1999 [draft] budget on the basis of a mostly passed tax code. Taxpayers and tax authorities will be able to implement it because the second reading determines the major points," he said.

The Finance Ministry had said if the code was not adopted before autumn, it probably would not be passed this year.

The Duma rejected a draft tax code last year after passing it in a first reading. There are now 13 proposals.

The government draft sets profit tax at 30 percent, compared to the current 35 percent, and proposes simplified taxation for small businesses and farmers.