Publication

This working paper presents an analysis of the introduction of the Unified Social Tax (UST) in Russia and looks at the implications and effects of UST in the fields of pensions, health and employment. The paper firstly describes the legacy of the Yeltsin era and gives an overview of the newly introduced UST and the related political debate. Subsequently, the paper reviews reforms in the areas of pensions, health and employment. The paper concludes that the UST heavily simplifies the tax system and reduces the volume of income deductions.