Page 22 - DIALOGUE FOR DEVELOPMENT №2
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estic exporters now expect from the government and parliament the specific
solutions, as well as existing laws on issues requiring immediate action:
Introduction of the Law on State Budget amendments for the allocation of a
special section "National Export";
Long-term (at least three years) lending to export industries;
Preferential tax treatment of export profits reinvested to upgrade the export
industries;
Widespread practice among banks in trade finance;
Creation of mixed (public, private and foreign capital) insurance companies on
export risks, loans and investments;
Reasonable liberalization status of special economic zones and territories of
priority development of export;
An introduction to the real action of the Law on cross-border trade and cross-
border industrial cooperation;
Creation of a governmental structure for planning and forecasting of export
development, monitoring, and the situation in world commodity markets and
services market foreign trade activities;
The speedy completion of a unified automated information management system
for foreign trade, on the basis established in many emerging markets news
program «Trade Map» - Trading card.
Creation of a mechanism for the revitalization of domestic investment in export
industries.
Recommendations:
1. It is proposed to adopt a new Tax Code, while it must necessarily include the
following key principles and provisions:
a) Tax Code, being a document of direct action, should concentrate within it all
regulations governing tax relations that are collected all previously contained in various
laws and regulations. The taxpayer, while opening a document, should be able to find in
it the complete and comprehensive information on the tax relations. The tax authorities
should not have the right to take legal acts (instructions, regulations, etc.), which specify
and the moreover change the provisions of the Tax Code.
b) Tax code should be simple to use and uniformed, without the possibility of dual
interpretations of its provisions from both the tax authorities and by taxpayers.
c) Tax Code should have "The principle of the presumption of interpretation in favor of
the taxpayer", namely, in all of doubtful contradictions and ambiguities of acts of tax
legislation, it should be interpreted in favor of the taxpayer.
d) The tax code should not be changed more than once every two years. The stability of
the tax system and its predictability is more important for the taxpayer and investor, than
the size of tax rates. Even if the tax burden is large and predictable, the taxpayers can
adapt to it, and will base their future plans on the basis of well-defined conditions. In
other words, in an unstable tax policy taxpayer is not able to effectively conduct financial
solutions, as well as existing laws on issues requiring immediate action:
Introduction of the Law on State Budget amendments for the allocation of a
special section "National Export";
Long-term (at least three years) lending to export industries;
Preferential tax treatment of export profits reinvested to upgrade the export
industries;
Widespread practice among banks in trade finance;
Creation of mixed (public, private and foreign capital) insurance companies on
export risks, loans and investments;
Reasonable liberalization status of special economic zones and territories of
priority development of export;
An introduction to the real action of the Law on cross-border trade and cross-
border industrial cooperation;
Creation of a governmental structure for planning and forecasting of export
development, monitoring, and the situation in world commodity markets and
services market foreign trade activities;
The speedy completion of a unified automated information management system
for foreign trade, on the basis established in many emerging markets news
program «Trade Map» - Trading card.
Creation of a mechanism for the revitalization of domestic investment in export
industries.
Recommendations:
1. It is proposed to adopt a new Tax Code, while it must necessarily include the
following key principles and provisions:
a) Tax Code, being a document of direct action, should concentrate within it all
regulations governing tax relations that are collected all previously contained in various
laws and regulations. The taxpayer, while opening a document, should be able to find in
it the complete and comprehensive information on the tax relations. The tax authorities
should not have the right to take legal acts (instructions, regulations, etc.), which specify
and the moreover change the provisions of the Tax Code.
b) Tax code should be simple to use and uniformed, without the possibility of dual
interpretations of its provisions from both the tax authorities and by taxpayers.
c) Tax Code should have "The principle of the presumption of interpretation in favor of
the taxpayer", namely, in all of doubtful contradictions and ambiguities of acts of tax
legislation, it should be interpreted in favor of the taxpayer.
d) The tax code should not be changed more than once every two years. The stability of
the tax system and its predictability is more important for the taxpayer and investor, than
the size of tax rates. Even if the tax burden is large and predictable, the taxpayers can
adapt to it, and will base their future plans on the basis of well-defined conditions. In
other words, in an unstable tax policy taxpayer is not able to effectively conduct financial
