Russia Aims For Lower Tax Burden in Long-Term, Putin Says

Russia’s increase of the value-added tax contributes to reaching a balanced budget, President Vladimir Putin says during annual news conference.

• NOTE: VAT will be raised from 20% to 22% from Jan. 1
• The government should monitor if there are non-payments of the tax
  • “When taxes rise, there is an immediate temptation to avoid paying this tax”
  • “We need to get rid of the shadow economy and avoid tax evasion. This is a serious task,” Putin says. “We need it to be reflected in real budget revenues, rather than on paper, when raising taxes.”

To contact Bloomberg News staff ...