01:53 GMT +325 September 2018
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    MOSCOW, April 9 (RIA Novosti) - Investment companies' experts call the Russian government's decision to increase taxation of dividends a reasonable initiative, though they believe that for the stock market, it is "moderately negative." Russian Finance Minister Aleksei Kudrin said Thursday that the government intends to increase from 2005 taxation of dividends of Russian enterprises from 6% to 9%. It is connected with the fact that a number of companies, where physical persons are holders of large packages of shares, set very high dividends. "It is more profitable than showing these revenues as wages or some other investments," the minister noted, explaining that in this connection the government deems it necessary to adjust the existing legislation.

    "From the point of view of state approach, this decision is reasonable, but for the stock market, it's infringement upon investors' interests, and it does not increase growth rates," Anatoly Kaplin, an expert with the Aton investment group, told RIA Novosti Friday.

    He noted a moderately negative reaction of the market, adding that it practically did not affect the dynamics of prices. "The increase of taxation from 6% to 9% is not very significant," Mr. Kaplin explained.

    Yegor Krotkov, an expert with the Trinfiko company, is of the same opinion: "The growth of tax deductions by 3% is not radical, which is manifested in the market's neutral reaction to the finance minister's statement." Besides, companies' shareholders receive revenues from these assets not only from dividend payments, that's why losses from the increase of dividend taxation will practically have no influence on investors' revenues.

    "The decision on the increase of taxation of dividends will not affect the shares' yield much, as the main motive to buy securities is market value," Alexander Razuvayev, an expert with Megatrustoil, said.

    In experts' opinion, the efficiency and reasonability of this tax measure is not questionable from the point of view of state approach.

    "There is tax policy that consists in the growth of tax deductions from oil production and in the reduction of the unified social tax," Mr. Razuvayev said. "The 3% increase can be explained as additional revenues to strengthen the budget with." "It's a normal government initiative, a competent fiscal policy," the expert concluded.

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