Page 52 - bne IntelliNews Country Report: Russia Dec17

Russian public sector main revenue streams (consolidated budget, 2017–20 finance ministry estimates)
Source: Finance ministry.
6.1.1 Budget dynamics - specific issues...
6.1.2 Budget dynamics - tax issues
Russia’s defence spending will average nearly RUB2.3 trillion ($39.5bn)
from 2018 to 2020, a senior Finance Ministry official said at the Federation Council Committee on Defence and Security meeting Tuesday, according to the Interfax news agency. Deputy Finance Minister Leonid Gornin told senators that figures have been revised upward to account for spending on defence infrastructure, program implementation and procurement.
Russia is likely to leave its tax code unchanged. A tax reform has been discussed in Russia for nearly a year, since president Vladimir Putin instructed the government to prepare proposals for changing the existing tax system.
Proposals are to be presented to Putin before the end of this year, and changes to the tax system – if any – are expected in 2018.
Government officials say that the current tax regime is optimal for business and the economy and, therefore, no major reforms are required in the tax domain.
The only major change that has actually been discussed is an increase of the value added tax (VAT) from current 18% to 22% with a simultaneous reduction of mandatory payments to the pension fund.
However, according to Vedomosti sources, some government agencies were categorically opposed to the idea. Their argument was an increase in VAT
52 RUSSIA Country Report December 2017 www.intellinews.com