Russian taxes rising, administrating them more difficult - Gref
MOSCOW. Nov 21 (Interfax) - Taxes in Russia are going up while administrating these taxes is becoming more difficult, Sberbank Russia President and Chairman and former economic development minister, German Gref, said.
Gref used the decision to increase insurance contribution rates as an example of taxes rising. Sberbank began to pay 43% more social payments this year, while insurance contribution rates were raised 34%, he said.
"This is my response to taxes are not going up. Taxes are going up," he said at the international tax conference: Taxation - A Modern View.
Earlier at the conference on Monday, acting finance minister Anton Siluanov said Russia's three-year budget does not envisage a rise in taxes.
Raising insurance contribution rates was discussed last year and most said this would not be the right decision, that it would hit small and mid-sized businesses, Gref said. Nevertheless, the decision to increase insurance contribution rates was taken.
This decision hit taxpayers that pay white (fully declared) salaries, Gref said. "Those that pay salaries suffered the most. I mean those that pay openly, not concealing, not in envelopes," he said.
Those taxpayers will again have to increase tax payments next year, Gref said. "We will pay even more next year."
Administration of taxes is becoming more difficult, Gref added. The decision on insurance contribution rates has led to more complex administration and a greater number of administrators, he said.