NEW TAX CODE DETAILS ANNOUNCED.

NEW TAX CODE DETAILS ANNOUNCED.

Russian Finance Minister Mikhail Zadornov unveiled the government’s revised draft tax code yesterday. He said he expected parliament to pass the new code by the middle of this year. If not, he said, Russia will be stuck with its present code for the next two and a half years, that is, until after the 2000 presidential election. Zadornov said the new code aims to stimulate investment by simplifying the system and reducing the number of taxes. The profit tax rate would be cut from the originally proposed 35 percent to 30 percent. The government has also abandoned its plan to increase the VAT to 22 percent from its current 20 percent. (Financial Times, February 11)

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