The Russian Tax Code is the primary tax legislation for Russia. It has 2 parts: the first deals with procedure and the second deals with actual tax rates. The Code is subject to change according to legislation and new laws. The Code is geared towards all federal and local taxes but excludes tariffs. The Russian Ministry of Finance estimates that revenues regulated by the Tax Code will account for 68 percent of federal revenue in 2008 with a majority of other revenues coming from oil and natural gas corporations.
Prior to the establishment of The Code, Russian taxation was VERY unorganized. Tax laws were made up of a patchwork of laws decreed by the USSR and many other local laws. In February of 1995, Boris Yeltin proposed to re-centralize the tax system. When the first draft was presented to the Duma in 1996 there were many complications and the Bill did not end up passing. Finally in 1998, the Duma ended up passing a new draft of the Code with a 312 to 18 vote. Part on was officially enacted on August 6 1998.
Part two, enacted under Vladmir Putin in 2000, intended to reestablish the actual tax rates because at this point the citizen was still paying old rates. It established a fixed 13% income tax and attempted to abolish sales based taxes by getting rid of municipal housing tax, the road tax, and retail sales tax
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