Updated 6:19 p.m. Moscow Time
MOSCOW, September 14 (RIA Novosti) - The Russian government is still mulling a new sales tax, but the ruminations are expected to end early next week, Russia’s Finance Minister Anton Siluanov told journalists Sunday.
“The Russian government is still considering a sales tax. This issue is to be looked into and the final decision will be taken next week, ahead of the budget meeting in the government,” Anton Siluanov said.
Moscow has been pondering a new sales tax for months, after the West targeted it for sanctions over Crimea’s decision to leave Ukraine for Russia.
The initiative may see regions introduce their own sales taxes of 3-5 percent starting 2015. The aim is to prop up regional budgets, including that in the Moscow region.
“We have earmarked funds in the budget that will be spent on the Moscow transportation network, and we believe that these issues can be resolved with the help of budget means and without any additional taxes,” the minister said, adding this angle would also be considered at the upcoming budget hearing next week.
The initiative to introduce a 3-percent sales tax was announced by the Russian Finance Minister as early as in July, although no decision was taken back then. It was also suggested that the value added tax be increased from 18 to 20 percent. Yet another measure on the list is a possible introduction of a progressive income tax instead of the current flat-rate 13 percent.
