Friday, April 1, 2011

Putin Skeptical about Medvedev’s Tax Plans

Russia’s Prime Minister Vladimir Putin seems to be doubtful about the validity of President Dmitry Medvedev’s plans to cut social taxes. In 2008, Putin initiated the increase of social payroll charges from 26% to 34%. Yesterday, Medvedev ordered that the tax be cut back. Putin responded that there are no "straightforward solutions" to that problem. Putin pointed out that the increased revenue has been used to finance the pension and public health systems, and that the government will have to cut other spending, such as the salaries of the police and military officers, if taxes are cut. Putin also disclaimed the idea of increasing excise on alcohol and tobacco products on the grounds that this would substantially increase the prices of those products. Nevertheless, Putin instructed the government to look into how the presidential order can be fulfilled. http://www.kommersant.ru/doc/1612154 http://www.vesti.ru/videos?vid=328426 (video)

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