MOSCOW, April 24 (RIA Novosti) - The government is preparing to submit to parliament a comprehensive package of long-term changes to Russia's tax laws, a deputy prime minister said Monday.
Alexander Zhukov said the amendments sought to improve tax administration, as well as encourage oil production, index customs tariffs rates, and increase social payments as part of income tax.
"After the amendments are made to the [tax] law this year, it will remain unchanged for quite a long time," Zhukov told a Cabinet meeting attended by President Vladimir Putin.
Zhukov said one bill was designed to increase oil production, stimulate oil companies to develop new deposits and intensify work at the oil fields already on stream.
"The law includes a zero tax rate for mineral production in East Siberia and on the continental shelf," he said.
Plans are also in place to introduce a sliding coefficient for oil fields with production exceeding 80%, Zhukov said.
"Lower severance tax will make their development cost-effective," he said.
The deputy premier also said that the government had drafted a law to index excise rates by an average of 8.5% for all eligible goods.
"However, excises for oil products will not be indexed so as to avoid increases in petrol and diesel fuel prices along with growing world prices," Zhukov said.
Zhukov also said excise payments would be switched to oil refineries.
"It will make the system simpler, and increase excise collection," he said, adding that social payments including education and health care within income tax would be raised from the current 38,000 rubles ($1,380) a year to 50,000 rubles ($1,817).
"We will consider these draft laws, approve them and submit to the State Duma at the next government session," he said, adding that if adopted, the package would come into force on January 1, 2007.
Putin said the government should seek stability in the tax sector, and praised the government's proposals, especially regarding tax administration.
"We have discussed it at length with business circles," he said, adding that he favored harmony between fiscal services and businessmen.
