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. Last Updated: 07/27/2016

Service Floats Tax Changes

The Federal Tax Service has proposed to the government changes in tax administration that, if put into practice, could boost the budget by up to 1.3 trillion rubles ($38.35 billion), Interfax reported Tuesday.

The proposals were downplayed at the Economic Development Ministry, which plans to submit its own suggestions in the coming days.

The tax service proposes a 0.5 percent crisis-time corporate tax on financial operations -- such as payments for goods, services or labor via a bank account -- as well as increasing the time for chasing up unpaid taxes to three years and scrapping rapid refunds of value-added tax, Interfax said.

The proposals were submitted to the government March 23, Interfax said, which saw the text of the letter. The measures could mean extra revenues of over 900 billion rubles for the federal budget and about 400 billion rubles for regions.

Mikhail Mokretsov, the head of the tax service, confirmed to Interfax that the letter was sent, adding that the proposal was prepared in response to Prime Minister Vladimir Putin's request to look at new sources of tax revenue.

A source at the Economic Development Ministry played down the proposal and said the government would have other options to consider.

"We will have our own suggestions, probably on Thursday," the source said on condition of anonymity.