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New year with new taxes for Russians
New tax code has come into force in Russia starting with Jan., 1, and the changes concern big companies as well as simple people. In general, despite government declared intentions to ease tax burden, the obvious tendency of recent years is to reduce old taxes very slowly, introducing new ones instead, of equal worth at best, Izvestia reports. This year the tax volume for most people will decrease. For example, a social and property tax deduction gets bigger, as the size of the total sum to calculate this deduction from is set higher. The social deduction will help the poor citizens to pay for education and medical treatment, being too small for well-to-do people to care much, while the property deduction increase is intended to promote real estate sales, boost construction and building materials sales. But, in full accordance with the above-mentioned tendency, this indulgence will be compensated for in 2005, when a new property tax tariffs will come to force. The rate of the tariff itself will be decreased, but it will be applied not to estate value according to the certificate from Bureau of Technical Inventory as it is now, but to the market value of the estate. This will mean three times increase of the actual payment. The only problem is to work out the rules of estimating the real market value– inability to do so has hampered the introduction of new regulation for two years already. Also a slump in prices was promised to Russian people this year, as a much hated 5 percent sales tax has been cancelled. It was applied before to any purchase, increasing the cost of any goods, especially coming to customer through many intermediate sellers. But no such thing is seen up to now – prices stay the same, and out of all Russians only merchants are likely to make advantage of new tax system, receiving 5 percent more profit.
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