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VAT payments to account for third of 2014 budget revenues

Value-added tax payments are projected to account for almost a third of all budget revenues in 2014, according to the finance ministry.

The revenues of the consolidated budget (the national budget, local budgets and the Social Security Fund) are forecast at 205.1 trillion rubels, an increase of 7.4 percent compared with this year.

Value-added tax will account for 32.4 percent of all budget revenues. The share of income tax will be 15 percent, of import and export duties 12.7 percent, of excise tax 11.1 percent, and of profit tax 9.2 percent, said the ministry.

VAT revenues are expected to increase by 12 percent to 66.4 trillion rubels.

The ministry warned that it expected profit tax revenues to fell by 12 percent to 18.8 trillion rubels.

The government has recently abandoned its plans to raise the VAT rate from 20 to 22 percent and lower the profit tax rate from 18 to 12 or 15 percent in 2014. Business associations have warned that a higher VAT rate would hit many manufacturers hard. //BelaPAN