Some Russian small businesses will pay a 26% social tax for two years instead of a 34% percent tax paid by other enterprises from next year, President Dmitry Medvedev said on Tuesday.
"I have decided that small businesses involved in production and social spheres will get a two-year transition period with a lower rate of insurance premiums of 26%," Medvedev said in his annual address to the nation.
The government, whose coffers are hard hit by the international financial crisis, will raise the tax which companies pay to pension, social insurance and obligatory medical insurance funds, to 34% from 26% from next year. The government hopes the measure will help it raise 460 billion rubles ($14.83 million) to be used for healthcare system upgrades.
Presidential aide Arkady Dvorkovich told reporters that small businesses would save 100 billion rubles from the measure.
"There are various estimates. If we talk of production and social companies, it will be about 100 billion rubles in the two years, or 50 billion a year," he said.
MOSCOW, November 30 (RIA Novosti)
