The message notes that the tax reform is to be completed in 2004-2005. The tax system must provide for financing budget demands, be easy for economic entities and not hinder the raising of their competitiveness and business activity growth, reads the document.
"Taxation terms must be clear and not allow arbitrary interpretation, which will make it possible to delimitate the lawful practice of tax optimization and criminal tax evasion," reads the budget message.
Reformation of the unified social tax is called upon to stimulate an increase in wages and legalization of their payment with simultaneous reduction of burden on business. The document says that for this it's necessary to reduce the efficient rate of the unified social tax, adjust the mechanism of using regression, including removal of unjustified restrictions on access to regression use in regard to taxpayers.
In 2004, chapters of the Tax Code relating to the tax on inheritance and the gift tax, real estate tax and land tax, which should contribute to civilized turnover of land and other property and become a stable source of revenue for regional and municipal budgets, are to be adopted.
The Tax Code should be supplemented with the chapter on water tax; reduction of benefits and the number of taxation entities should be envisaged. Amendments to the forest and water legislation must create a system of payments for the use of natural resources, which will contribute to their rational use. The size of payments must be adequate to the real cost of these resources, says the message. The problem of taxation of production and exportation of raw materials resources aiming at economically grounded withdrawal to budget of raw materials companies' revenues (natural rent) remains urgent.
The necessity has become ripe to improve the procedure of levying the value added tax: advance payments taxation should be excluded, issues of VAT timely reimbursement during export operations and capital investment should be resolved. It would be expedient to reduce this tax's rate from 2006, reads the document.
It's necessary to start developing and practically applying the standards of tax inspections' activity, including those taking into account temporary expenses of taxpayers for tax reporting submission. The conducting of inspections must not hinder the activity of bona fide taxpayers and cannot be used as an instrument of punishment. Increasing the actual terms of such checks established by law is inadmissible, emphasizes the Russian President's budget message.
