The Ministry of Economic Development of the Russian Federation has proposed to simplify the tax system and conduct the most significant tax reform in the country’s recent history. The Ministry wants to abolish VAT, personal income tax, income tax and insurance premiums, but collect sales tax of 6.2%.
If you impose a 6.2% tax on the revenue of organizations, you can replace the four existing taxes, equalize the rights of companies, and eliminate shadow costs. The Ministry hopes to block the ways of tax evasion and simplify tax administration as much as possible.