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. Last Updated: 07/27/2016

Shatalov Says Cut Tax

MOSCOW -- Russia should ease the tax burden on individuals and enterprises to make the economy more efficient, First Deputy Finance Minister Sergei Shatalov said in an interview published Tuesday.

Shatalov, one of the authors of the Tax Code, and now in charge of tax reform, told Kommersant daily the maximum income-tax rate should be cut to 20 percent from 30 percent and non-taxable income levels should be increased.

He also said the government should revise the system of payments to social and pension funds and methods of calculating profit tax, which he said were inefficient.

The government should also reconsider tax breaks, which are costing federal and regional budgets $25 billion to $30 billion annually. Tax breaks should be reduced, and instead the government should channel funds directly to regions or enterprises that it wants to support, Shatalov said.