Introduction of the second part of the Tax Code will seriously affect the 2001 Moscow budget

Moscow has lost RUR50bn ($1.755bn) because of the introduction of the second part of the Tax Code of Russia. Deputy head of the Moscow Duma Alexander Krutov noted that the introduction of the second part of the Tax Code would seriously affect the 2001 Moscow budget. According to him, Moscow loses RUR16.5bn ($576m) due to the abolishment of the VAT, the abolishment of the sales tax will deprive Moscow of RUR17.5bn ($614m), and another RUR16.5bn it will lose on taxes to road funds, RBC reports.