Duma to up social tax by 8 pc from 2011

MOSCOW, July 17 (Itar-Tass) -- The Russian State Duma will consider
under the final reading on Friday a lawbill that splits the Unified Social
Tax (UST) into direct payments to extra-budget funds and increases them by
eight percent from 2011.
It was initially proposed to raise the payments from 2010, but the
business community asked the government to keep social taxes unchanged for
a year.
"The transfer to a new system of paying insurance contributions in
2010 will in no way affect the business community as the rate remains at
the UST level and comprised 26 percent," deputy speaker Nadezhda
Gerasimova explained.
The breakdown will be 20 percent to the Pension Fund, 2.9 percent to
the Social Insurance Fund, and 3.1 percent to the Obligatory Health
Insurance Fund.
"However, in 2011 the rate will be increased to 34 percent. The
Pension Fund will receive 26 percent and the health insurance fund - 5.1
percent," Gerasimova said.
The Pension Fund permanently lacks proceeds to pay pensions and the
shortage is compensated from the federal budget. In 2010 budget
contributions are to comprise close to 98 billion rubles.