Amendments to Tax Code, which will influence budget forming were approved at meeting of Federation Council on July 20, in Moscow. In particular, profit tax is reduced from 35% to 24%. The bill on this issue is one of the number of legislative initiatives that were introduced to the State Duma during spring session.

Reduction in tax rates is supported by cancellation of any tax concessions. Interpreneurs will be encouraged to reduce advertising and self-presenting expenses. 12% excise rates for alcohol and tobacco containing goods, oil and etc are also approved, excise rate will not change for jewellery and natural gas.

New tax for mining operations - a single tax instead of excise, royalty or compensation for mineral and raw base. A tax of 340 RUR is imposed on 1t of oil. In addition to this the bill will enable government to set extreme rate on different minerals. Share of 40% will come to Federal Budget and 60% will go to budgets of RF bodies.