Medvedev To Discuss Tax With Business Leaders

by Tatiana Smolenskaya, Tax-News.com, Moscow

22 August 2008

A recent report has suggested that Russian President Dmitry Medvedev will meet with some of the country's most powerful business leaders next month to discuss a range of economic issues, with tax high among them.

According to a report by Reuters on 20th August, Medvedev has said that he will set up the meeting in September following recent talks with billionaire Vladimir Potanin, reputedly Russia's sixth-wealthiest man, at his Black Sea residence.

The report added that Potanin, who made his fortune in the lumber and mining industries and is a major shareholder in Norilsk Nickel, is urging the government to reduce taxation and simplify tax administration.

Since his inauguration as President in May, 2008, Medvedev has signalled a more conciliatory approach to business issues than his predecessor in the top job, Vladimir Putin, who is now Russia's Prime Minister, and in a recent meeting with senior government officials he called on state institutions to stop "terrifying" private business with unwarranted inspections and unnecessary bureaucracy. However, the President added that the government should continue to be intolerant of aggressive corporate tax avoidance.

Last month, Medvedev signed into law provisions designed to improve the tax situation of small businesses in Russia and reduce the tax burden on the oil sector, although the government has attracted criticism by ignoring calls for more widespread business tax cuts and reforms. Indeed, Finance Minister Alexei Kudrin suggested recently that the social security tax burden will have to rise to bolster to ensure provision of the state pension for future retirees.

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