Improving the financial and legal environment must be high on Putin's agenda, because Russia's economic revival must rely almost exclusively on private investment. What hamper business in Russia most of all are taxes. If entrepreneurs paid all the taxes they owed, they would pay more than they earned. Over the years, there has been much talk in Russia about reducing the tax burden, but only Putin's government has tackled the issue. It intends to improve the general rules of the game for taxation and lower taxes on producers and ordinary citizens.
Tax officials plan to eliminate all preferences and seek to establish equal conditions for all.
This approach signals a radical shift in the government's economic philosophy. The government seems to understand the significance of improving the economic environment. Legal experts are working on protecting minority stockholders' interests, introducing transparent accounting techniques, and implementing other reform measures. But carrying out some important reforms requires consistent policy rather than isolated initiatives. First, Russia must support competition.