New property taxes might be introduced in 2005

A new property tax and a land tax are likely to come into effect in 2005, not in 2004 as it was planned earlier, Deputy Finance Minister Mikhail Motorin told journalists responding to an RBC question. According to him, the property tax will be calculated on the basis of market prices of houses and apartments, while the methodology of evaluating such property has not been worked out yet. The delay in the introduction of the land tax is due to the same reason, he admitted.

The deputy minister mentioned that a set of bills on property taxes was recently considered at a meeting headed by Deputy Prime Minister Alexey Kudrin and it was decided to retain almost all benefits on these taxes.