This year there has been adopted a package of amendments to the taxes and fees legislation in accordance with the instruction of the President of the Russian Federation aimed at changeover and improvement of the current tax system. It is expected that after these changes come into force, the basic parameters of the tax system will be secured at least for the next 6 years.
There have been a number of substantial legislative changes in a few areas, but at the same time a lot of standards have remained unchanged. It is obvious that one can hardly take into consideration all groups' wishes and interests so that there always are people remaining unsatisfied with the new rules of the tax system.
Nevertheless, the key goal of the tax reform is to find balance between ensuring a stable budget system and creating incentives for economic growth.
However, questions remain if there is a chance to find an ideal tax system and where we need to move in the next 6 years.
Which countries’ experience is to be taken into account in the Russian tax policy? How to achieve the right balance between fiscal and incentive functions of taxation?
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One of the key prerequisites for boosting the long-term growth of Russian economy is an increase of infrastructure investments. A rise in infrastructure availability improves production rates and, consequently, contributes to speeding up potential rates of growth. Infrastructure investments help keep costs on already existing and implemented investment projects low, increase export opportunities and the scale of Russian involvement in the international cooperation, as well as create conditions for the development of human capital. At the same time we observe that Russia lags behind in availability and quality of infrastructure when compared to OECD countries and a wide range of developing economies. Thus, it now obvious that Russian economy needs developed and improved infrastructure.
How can we assess the need for infrastructure investments in Russian economy? What types of infrastructure are needed most today? What systemic measures have to be taken to provide "infrastructure breakthrough”? How to attract private capital in infrastructure projects?
National projects in the field of education and culture as potential drivers of socio-economic development of the country, creating a foundation for the breakthrough scientific, technological and socio-economic development of the Russian Federation, improving the citizens’ living standards, as well as conditions and opportunities for personal self-fulfillment.
In the next 6 years a key challenge for the Russian economy will be the decrease of employable population and the rising demographic burden. Under these circumstances an increase in labour productivity is the only way to assure a significant rise in growth rates. The President of the Russian Federation has set the task of increasing labour productivity at large- and medium-sized enterprises of the basic sectors of the economy at an annual rate of 5%. Along with the expansion and modernization of production capacity, it is essential to increase the efficiency of business processes. The implementation of economical production technologies at pilot enterprises under priority project "Increasing labour productivity and empowering employment" has led to spectacular results. How do we transfer those successful results to other enterprises and industries? What has to be done to establish a culture of sustainable growth in labour productivity in the entire economy?
Today the development of public procurement system is aimed at creating an information space that will ensure openness and transparency. This can be achieved by using electronic documents, uniform classifications and single primary sources of information.
The Ministry of Finance of the Russian Federation works systematically to improve procurement mechanisms in order to enhance their effectiveness.
E-procurement will become mandatory from January 1, 2019 while it has been provided since July 1, 2018. Since November 2017, the Catalog of goods, works and services has been available in the Unified procurement information system. It increases the level of procurement transparency, reduces corruption risks and enhances the effectiveness of procurement control.
In the era of breakthrough digital technology, a great number of industries are experiencing significant changes and major companies around the world are keeping up with digital progress optimizing their business models.
Now almost all the information and business processes have been digitized, and financial transactions are able to cross international and intercontinental boundaries in a matter of seconds. This is a challenge for financial institutions generally and for tax and customs administrations in particular.
Revenue administrators must be among the leaders in following new trends and use advanced instruments aimed at improving the efficiency of B2G interaction, including its facilitation.
How to adapt legislation to new technologies without harming all participants in budget and tax legal relations? How to better integrate customs and tax technologies in the digital and business environment of taxpayers and participants of foreign economic activity? Do contactless technologies of tax and customs control have limitations? Is it possible to fully substitute foreign information technologies in the domestic public sector with local ones? How to provide services to taxpayers and participants of foreign economic activity effectively?
In recent years, the system of intergovernmental relations has gone through significant changes. While evaluating the efforts to improve the efficiency of inter-budgetary relations it should be mentioned that there are visible positive results achieved by means of balanced regional budgets. Needless to say there’s always room for improvement.
It is necessary to resolve a number of key questions to find out ways for further development of inter-budgetary system in the near future.
At the moment, the regions are overwhelmed by current social expenses and they are lacking funds for investments, including those set by the Presidential decree of 07.05.2018 No. 204. The question is how to find resources in regional budgets and use them to fulfill the tasks set in the Presidential decree.
Inter-budgetary relations as a factor affecting spatial development of the regions.
Encouraging regions to increase economic potential and own incomes: who has to be encouraged?
Public debt of constituent entities of the Russian Federation: to reduce or to increase?
New distribution of competences among public authorities.
How to expand the mechanism of budgetary control, and create incentives for socio-economic development of municipalities?
The experience of developed countries shows that the foundations of the modern economy today are shaped by the small and medium business. Meanwhile, Russia lags behind OECD countries in terms of contribution of small and medium enterprises in key macroeconomic indicators. By 2025, the share of SMEs in GDP has to be close to 40% and the number of people employed in the sector has to be increased to 25 million people. How to achieve these goals? In recent years the developed infrastructure to support SMEs has been created. What else needs to be done to revitalize the development of entrepreneurial initiatives?
Rapid development of urban agglomerations is a matter of course for both developed and developing countries. It is the agglomerations that create the necessary concentration of human, financial, scientific and technological resources to create new points of growth, new innovative productions and ideas. Nowadays urban agglomerations largely determine the competitiveness of national economies, economic competition among countries turns into competition among major cities.
In the framework of the goal to increase labor productivity in Russia and ensure substantial growth rates, set by the President of the Russian Federation, we are facing the task of supporting urban agglomerations as points of such growth.
How to determine the boundaries of influence and economic potential of the urban agglomeration? How to ensure rapid development of an agglomeration? Which projects have to find support in the "growth points"? How to manage urban agglomerations and projects located there?
The formation of comprehensive legal regulation is one of the main drivers of the digitalization of the economy and its quantum leap in the era of rapid development of new digital technologies, including the finance industry.
Digital and financial assets are an important part of the process, as a new instrument of economic turnover.
The main task of the government is to create a legal framework and stable foundation for implementation of innovative financial technologies and minimization of both systemic and customer risks at the same time.
The quality of governance these days is a priority for the development of the country. Centralization of accounting may be one of the tools to ensure effective management of public finance and to optimize functioning of the financial-budgetary sphere.
Which model of accounting centralization will be the most effective? What advantages is the executive branch going to get from delegating accounting authorities? What are the prospects of legal regulation of accounting centralization?