Russian PM does not rule out increasing tax burden

GORKI, Aug 5 (PRIME) -- Russia may raise the tax burden to replenish state coffers, Prime Minister Dmitry Medvedev said on Tuesday at a government meeting on 2015 budget planning.

“To achieve the further growth, we must concentrate on the priorities and increase the efficiency of federal expenses… On the other hand, we have to analyze additional possibilities for mobilizing revenues, including various options, increasing the tax burden is among them, even if the measure can be taken only as a last resort,” he said.

On Monday, the Finance Ministry has sent to the government a draft bill allowing the regions to impose a 3% sales tax to help them cover budget deficits. The measure, if implemented, will add 195 billion rubles to regional coffers in 2015, 211 billion rubles in 2016 and 230 billion rubles in 2017. Previously, Deputy Economic Development Minister Sergei Belyakov said that the tax contradicts government plans on not increasing the tax burden till 2018.

Medvedev also said that the government will fulfill all its social obligations and they will be included in the budget for the next three years, adding that the budget for these years must be balanced and include the negative impact of the Western sanctions. The budget draft should be brought to the government by mid-September, he said.

(35.6605 rubles – U.S. $1)

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