Baseline option for 2015-2017 macroeconomic forecast no longer envisages sales tax - Ulyukayev
ISTANBUL. Sept 16 (Interfax) - The Russian Economic Development Ministry has removed the imposition of a sales tax in the latest baseline forecast for Russian socioeconomic development, Economic Development Minister Alexei Ulyukayev told journalists on Tuesday in Istanbul.
"While at the latest meeting with the head of government namely this concept was agreed upon - that we are calculating the baseline option without the hypothesis about the imposition of a sales tax," the minister said.
As a result, the inflation forecast for 2015 was lowered to 5.5% from 6%, he said.
The baseline option originally enshrined the right of Russia's regions to impose a sales tax of up to 3%, he said. The ministry thought from the outset that this would extend to around 50% of turnover, but the bar was then lowered to 30%. As a result of this, the first 2015 inflation forecast of 6.5%, made at the end of August, was lowered to 6% at the start of September.
The latest decision to not impose sales tax at all lowers the inflation target for next year by another 0.5 pp, and the latest baseline forecast is 5%-6%, with a 5.5% benchmark, Ulyukayev said.
He also said not having to factor the sales tax in improved the investment and profit forecasts. "The 2015 investment growth forecast is 2% instead of 1.5%," he said.
He said that on Wednesday a meeting with the Russian president is planned, at which it is expected to make a final decision on this issue.
