Kremlin against raising taxes, but govt may be forced to raise them
2011-11-21 17:59:21
The Finance Ministry may be forced to raise taxes, faced with higher spending, despite the Kremlin's unwillingness to do so, Presidential Economic Aide Arkady Dvorkovich said on Monday.
"I'm not just against raising taxes, I will do my best to prevent it," Dvorkovich told a tax conference. "The Finance Ministry is in a more difficult position and I understand it. Even if the Finance Ministry is against raising taxes, it could be forced to raise them due to budget expense growth."
He said the real tax burden on the economy amounted to 40 percent of gross domestic product.
"I think we must stop saying that we have an option to raise taxes. There is no such option, it is alleged," Dvorkovich said, adding that the government should improve tax collection.
Acting Finance Minister Anton Siluanov said that the tax policy should not be changed in the next five to six years, while Economic Development Minister Elvira Nabiullina suggested reducing the tax burden on business but to raise taxes on consumption.
German Gref, head of Russia's top bank Sberbank, said businessmen wanted a clear position from the government concerning further changes to the tax system.
"We have heard promises from our political parties and the government. Businesses interpret all these promises as a promise to raise taxes. If this is not so, it is necessary to give an answer showing how these promises will be kept," Gref said.
He said the bank had paid 43 percent more social payments this year although tax itself had been raised by slightly more than 30 percent.