The single social tax could be reduced instead of the VAT in 2004, Russian Finance Minister Alexey Kudrin stated to journalists. However, he pointed out that this issue required additional calculations. Answering RBC's question, Kudrin reported that in two weeks, the Finance Ministry would present to the government its suggestions on amending tax legislation. The Minister believes that in any event, when the tax burden is reduced, socially important expenditures of the budget should not be damaged. He added that the reduction of the tax burden was to be coordinated with the calculation of the medium-term financial plan and financial grounds of distributing authority among various government levels. According to Kudrin, by April 1, the Ministry is ready to introduce its achievements on amending the Budget and the Tax Code, which will allow for financial distribution of authority.
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