Taxes on bank profits to be maintained - Kudrin
MOSCOW. March 16 (Interfax) - Banks, which received extensive financial support during the crisis, should not contend for new preferences, Deputy Prime Minister and Finance Minister Alexei Kudrin said at a banking conference in Moscow on Wednesday.
"As already said, we will not be boosting taxes on banks. But you also will not come forth with your own proposals," Kudrin said, commenting on a proposal from Dmitry Ananyev, the chairman of the Federation Council's committee on financial markets and money circulation, for lowering taxes on bank profits.
"There is no need for eliminating the tax on profits for the banking business," Kudrin said.
He said that current market mechanisms are in place for raising capital in the banking system. Therefore, demanding an administrative redistribution of funds for banks is unnecessary.
"There are regular market mechanisms for raising capitalization - IPOs, boosting capital and seeking out investors. Why wouldn't these be useful? If one wants to boost capital but not dilute one's stake," Kudrin said.
He added that during the crisis the government had provided support to banks such as unsecured loans. "Even those that didn't get direct support should understand from where the stability camehow calm was maintained and trust in the sector was boosted overall. Everybody won, even those that didn't receive loans," Kudrin said.