RUSSIA: Taxes

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The most important event on the Russian calendar is the Congress of the Russian Communist Party, due next week.

First on the agenda is a reform of the taxation laws. The proposed new tax laws call for a single tax plan and will be progressive in character, with an ascending ratio of taxation based on the prosperity of the individual farmer. Unlike the tax of last year, it will not be paid in grain. It is estimated that about 20% will pay in cash, 20% in produce, and the remaining 60% in cash and produce. In determining how the tax will be paid the economic situation of each district will be taken into account.

Flax, cotton, sugar beets, and medicinal herbs will be exempt from taxation in order to encourage the planting of these crops.