The Russian government will reportedly pass on Putin's orders for a new tax-reform policy

Russia’s federal government will reportedly recommend postponing tax-reform plans in the near future, according to the newspaper Vedomosti. The proposal is expected to appear in a policy paper that will be submitted soon to President Putin.

The only tax reform that had been actively discussed was the possibility of lowering insurance premiums and raising the VAT to 22 percent. Vedomosti says the government previously considered and rejected the idea of introducing a national sales tax.

Vladimir Putin announced the need for tax reforms in his address to the Federal Assembly last December, giving the government a year to prepare a report on reform options.

Kremlin sources have told journalists repeatedly that no major tax reforms are planned before next year’s presidential race.