The proposal to reduce the value added tax (VAT) from 18 to 13% “will upset our parameters,” Finance Minister Alexei Kudrin said at a Friday meeting of the Competition and Business Council.
“This step will prevent us from meeting the inflation targets and stifle our positive measures,” he said. Kudrin suggested holding a separate discussion of the tax reform with businessmen and telling the government about discussion results, Itar-Tass reports.
Earlier in the day Prime Minister Mikhail Fradkov said that the VAT rate might be reduced. He said the government is so far unable to use Stabilization Fund money because it cannot find “a point of the economic growth.” Fradkov thinks that will be done sooner or later, and “we will be able to reduce the VAT rate on security of the Stabilization Fund.”
Alexander Shokhin, who was elected as the President of the Russian Union of Industrialists and Entrepreneurs (RUIE) on Friday, supported the plans to reduce the value added tax (VAT) from 18 to 13% in 2007.
The intention shows that the tax reform goes on, he said. At the same time, the VAT reduction may cut revenues two or three years later, Shokhin said. “It is important that the government does not compensate these losses with other taxes,” he said.
A terrible accident occurred on a ski lift in Gudauri, Georgia when a malfunctioning elevator accelerated to a high speed and started crushing passengers
Acting Russian President Vladimir Putin is winning the presidential election in the country in a landslide victory
Russia's Foreign Ministry announced retaliatory measures against British diplomats: 23 Britons are to be expelled from the Russian Federation