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the agency, called the expectation of an increase in the VAT collection rate “excessively optimistic,” noting that the rate is already at 95%.
During the bill’s first reading, Alexander Demin, a deputy from the New People party, asked Siluanov what the government plans to do if expenditures don’t increase as expected. “In any event, all of the obligations outlined in the budget will be financed either through revenues or through other sources,” the minister responded.
Tax hikes already in the works.
The Russian authorities are already discussing a tax hike for businesses. On November 15, members of the Russian Union of Industrialists and Entrepreneurs (RSPP), a lobbying group for major businesses, met with Vladimir Putin at his residence in Novo-Ogaryovo.
One of the issues the businessmen were most concerned about is the stability of their tax load. Rather than discussing the maintenance of the tax rate at its current level, they asked about its predictability.
RSPP chairman Alexander Shokhin said that he would be open to a tax increase in exchange for long-term predictability in the government’s tax policy. He proposed that the government raise the corporate income tax rate (which is currently at 20%) while simultaneously guaranteeing the stability of other taxes and fees, including customs duties, tariffs for natural monopolies, and others.
So far, the government has only resorted to one-time contributions from enterprises. For example, part of its revenues next year will come from export duties (which contribute around 750bn rubles, or $8.5bn, to the budget) and a windfall profits tax (which is expected to yield approximately 300bn rubles, or $3.4bn).
This article first appeared in Meduza here
2.8 Cyprus papers and sanctions loopholes
It appears that the U.S. and its allies are increasingly revising their sanctions policy toward Russia. Now, the emphasis is on plugging loopholes in existing restrictions. This week, the spotlight was on financial institutions in the UAE and Cyprus, as well as Greek shipping.
The publication of the Cyprus Papers, a huge quantity of Cypriot financial documents, highlighted the extensive use of financial companies and institutes on the island to circumvent sanctions against Russia. Their publication put pressure on the Cypriot authorities from the media, and Western politicians.
According to Cyprus’ Philenews, an investigation into cases of sanction evasion against four Russian billionaires, including Alexei Mordashov, should be concluded within a month. But the issue does not end there. The Cypriot Police Force has created a special team within its economic crimes
20 RUSSIA Country Report December 2023 www.intellinews.com