The Russian Finance Ministry has proposed canceling "double taxation" on voluntary pensions.

Prior to 2008, employers had to pay tax on insurance premiums for employees who wished to receive additional voluntary pensions.

These payments were later scrapped, which in turn made the employees, given that they were still holding the job, pay 13% out of their retirement funds in tax, the Russian Constitutional Court said.

The tax, therefore, has been paid twice: before and after 2008, cutting pensions by significant amounts.

The ministry proposes that the tax be only paid by employers so as to avoid any confusion in the future.

If approved, the move, a belated victory for retirees perhaps, will be tapped into President Dmitry Medvedev's crusade to eliminate red tape and corruption from Russia's bloated government apparatus.

MOSCOW, August 4 (RIA Novosti)