Source Pravda.Ru

Russia's Cabinet Does All To Stave Off Unfair Economic Competition

The Russian government is going to take tough steps in a bid to prevent unfair competition in the economy, such as the gaining of tax benefits. This was said at a meeting, Wednesday, between Russian Prime Minister Mikhail Kasianov and the Czech business elite. Kasianov recalled that in the course of tax reforms the government took a decision cancelling all tax benefits and sizeably easing the tax burden on entrepreneurs. The lowering of the number and volume of taxes led to a situation when the level of tax collection from individuals has jumped 56 percent up. Thus, "a psychological barrier has been overcome: people have understood that the state relies on taxes," said Kasianov. He also reminded that on January 1, 2002 the income tax will be reduced from 35 to 24 percent. It will provide more incentives for boosting the pace of industrial modernisation, said the Russian premier.