OREANDA-NEWS. On 14 July 2009 was announced, that the tax burden on the real sector decreased 5.3 percentage points of GDP in January-May 2009 to 30.1% of GDP [transfers to the Social Security Fund of the Labor Ministry are not accounted for], First Deputy Tax Minister Vasily Kamenko told a news conference.

“Governments are traditionally looking for ways to reduce the burden on economic agents in time of crises. We have decided to abolish the most severe tax of all – the turnover tax and transfers to the agriculture support fund. We also consider reducing the profit tax 4 percentage points. The gap will be filled with the help of a higher VAT rate,” Kamenko said.

The working group for simplification of taxation procedures considers abolishing local targeted transfers, vehicle acquisition tax and the rights of local councils to increase land tax rates in 2010.

The question of a higher VAT rate is still under discussion, and so is the issue of faster VAT refund. It is planned to introduce a two-day limit for VAT offset and a five-day refund limit.