Looking for Revenue

The Ministry of Finance may impose a tax on income from bank deposits, Deputy Minister Alexei Moiseev said.

According to Moiseev, the situation where people “in principle do not pay anything on deposits” is quite exceptional in world practice.

“A person with one billion rubles on deposit, and there are such people, and they pretty much do not pay any tax on the income of their deposits. You cannot do this anywhere else.”

Moiseev also noted that the President had proposed cancelling taxes on bond coupons.

Then the bond holders would not have to pay anything on earned income to the state.

Moiseev did, however, acknowledge “…that the Ministry of Finance was unable to figure out how to do it.”

“That is why we are looking at a working version of equalizing conditions through “do everything worse”, that is, nevertheless, to impose taxes on some portion of the deposit,” he said.

The Deputy Minister did take pains to impress on his listeners that the proposal was not in the budget draft law, but that the Ministry was looking at options to increase revenue, and this was one of them.

Of course, Rosbalt reminded its readers that the outcome of this proposal would be a spike in capital flight, with “more affluent investors” moving money into the financial markets abroad.

One thought on “Looking for Revenue

  1. Pingback: Russia’s Economy: A Primer – Nina Jobe

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