Russia to reform tax law

The lower house of the Russian parliament the Duma has approved the second reading of a bill aimed at radically reforming the country's taxation system.

The bill proposes a flat rate of thirteen percent for income tax to replace the current progressive tax, which ranges from twelve to thirty percent.

The Communists argue that the reform will only benefit the rich since the vast majority of the population pays taxes at the lowest rate, of twelve per cent.

Supporters of the bill say simplifying the system will make taxes easier to collect and encourage the rich to declare their incomes.

Russia has one of the lowest tax-collection rates in the world.

From the newsroom of the BBC World Service