Putin Hints At More Tax Cuts

by Tatiana Smolensky, Tax-News.com, Moscow

31 October 2001

At the official opening of the Russian stage of the World Economic Forum in Moscow this week Russian President Vladimir Putin confirmed that he is pushing ahead with reforms and said that further tax cuts could still be on the cards.

He told delegates attending the meeting, an international gathering of business people: 'We will further develop the pace and quality of reform ... the first direction is a further reform of the tax regime, at the present time maybe it is a little premature to speak about it, we are thinking about cutting a few taxes, including such taxes as VAT.' It is necessary, he added, to 'act very carefully but consistently.'

Currently Russia's rate of VAT is levied at 20 per cent with some food stuffs at 10 per cent. Putin has recently reduced the tax burden on Russia's taxpayers by implementing a flat income tax of 13 per cent and reducing company tax to between 25-30 per cent.

The World Economic Forum, based in Geneva, Switzerland, is an independent organization committed to improving the state of the world. Funded by the contributions of 1,000 of the world's foremost corporations, the Forum's organisers state that it acts in the spirit of entrepreneurship in the global public interest to further economic growth and social progress.

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