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Sberbank CEO calls new parameters of Russian tax system balanced

According to the financial and economic justification for the draft law on tax innovations, changes in the tax system will bring about 2.6 trillion rubles ($28.98 bln) of additional revenue to the Russian budget system in 2025

ST. PETERSBURG, June 6. /TASS/. Sberbank CEO Herman Gref called the new parameters of the tax system balanced, he told reporters on the sidelines of the St. Petersburg International Economic Forum (SPIEF).

"Any increase in taxes has a negative impact on economic activity. But I must say that the package that has been introduced is quite balanced," he said.

According to the financial and economic justification for the draft law on tax innovations, changes in the tax system will bring about 2.6 trillion rubles ($28.98 bln) of additional revenue to the Russian budget system in 2025. "The adoption of the bill will lead to additional revenues to the budget system in the amount of about 2.6 trillion rubles in 2025," the document said.

Russian presidential spokesman Dmitry Peskov told reporters earlier that the proposed changes to the Russian tax system are a serious and needed initiative. "This is a very serious initiative. It is really needed and is in line with the main conceptual messages that the President [of Russia Vladimir Putin] voiced in his address to the Federal Assembly. So, of course, there will be a broad discussion," he said.

The Russian Finance Ministry said in its press release on Tuesday that it has submitted to the government a package of amendments to the fiscal system. "The Russian Finance Ministry put forward to the government a package of draft laws comprising amendments to the Budget Law for 2024 and the planned period of 2025 and 2026, and amendments to Internal Revenue and Budgetary Codes. Proposals will be reviewed by the commission for lawmaking activity and then at a meeting of the Russian government," the ministry said.

The State Duma, the lower house of the Russian parliament, can approve amendments as early as during the spring session, the ministry noted.

In particular, the ministry suggests raising the corporate income tax from 20% to 25% since January 1, 2025. The individual income tax on dividends and deposits is planned to be set as 13% for the amount up to 2.4 mln rubles ($26,600) and 15% above this amount. A progressive scale is planned for the individual income tax. The mineral extraction tax is proposed to be increased by 1.15 times when producing iron, by 2.3 times for producers of potash fertilizers, and by a factor of two for producers of phosphate fertilizers.

The St. Petersburg International Economic Forum (SPIEF) is held on June 5-8. This year’s theme will be "The Formation of New Areas of Growth as the Cornerstone of a Multipolar World." Scheduled events include meetings for small and medium-sized businesses, creative industries, the SPIEF Youth Day, as well as the Drug Security, SPIEF Academy and SPIEF Junior forums. SPIEF is organized by the Roscongress Foundation. TASS is the information partner of the event.