The abolition was necessitated by a globally accepted pattern on which value-added taxation is up to the importer country, the house says in a related statement.
VAT abolition is expected to cut next year's federal revenues by 35.8 billion roubles, roughly US$1.2 billion. To make up for the loss, the house proposes to enhance mineral extraction fiscal rates-from 400 roubles to 419 for a tonne of petroleum, and 107 to 135 roubles a thousand cubic metres of natural gas. Fiscal revenues will thus increase by an annual 10.4 billion roubles for oil and 16.4 billion for gas, all to go to regional purses, says the statement.
The Federation Council also approved amendments to the federal law, On Insolvency/Bankruptcy of Crediting Organisations.
The amendments will buttress guarantees against bank ruination, and promote streamlining bankruptcy procedures to offer well-knit arrangements for legal and financial protection of creditors' interests, says Sergei Vassilyev, Federation Council finance market committee head.
As he was addressing the media, the Senator highlighted major amendments of legal clauses that stipulate pre-trial arrangements to prevent bank insolvency.
The law enhances liability of bank proprietors and managers for moves made with bankruptcy impending. An added clause obliges a bank with such prospects to notify the Central Bank of Russia about all major property transactions that may hit creditors.
The amendments authorise the Central Bank to order a crediting organisation to convene the Directors' Board or arrange shareholders' general meeting for decision-making to cancel the bankruptcy danger. The Central Bank may send an envoy to take part in those bodies' routine.
This right will help the Central Bank to get into close touch with bank proprietors even when problems are only budding, and monitor financial improvement work, stressed Mr. Vassilyev.
As the amendments have it, bank founders/stockholders guilty of ruining it face a ban to purchase stock of another bank at more than 5% of the latter's authorised capital for ten years since the Arbitration Court confirms the former's bankruptcy.
The amended law also offers grounds for invalidating transactions on which the Central Bank is not duly notified. The new clause reduces the hazard of assets removed from a problem bank to creditors' detriment, explained Sergei Vassilyev.
