Kudrin: Russia won't raise taxes at present
MOSCOW. Feb 21 (Interfax) - There is no possibility that Russia will raise taxes at present, Deputy Prime Minister and Finance Minister Alexei Kudrin said at a meeting of the Federal Tax Service's collegium on Monday.
"I don't think we currently have any additional outlook for raising taxes," Kudrin said.
Russia is faced with choosing the economic model it will live by in future, he said. If it chooses wrongly, then taxes might have to be cut or increased, he said. However, there is no possibility taxes will be raised right now, he said.
Higher taxes would place an additional burden on the economy, slowing growth and the pace of modernization.
"Raising taxes is in essence the redistribution of funds from enterprises that could make private investment and support economic growth, to other spending, the state, which is less capable of being the driver of growth," he said.
Tax and non-tax revenue of all budgets and non-budgetary funds amounted to about 35.3% of GDP in 2010, he said. The amount administered by the various tax services rose to 17.2% of GDP in 2010 from 16.1% previously.
Kudrin said Russia is currently selecting a new economic model.
"We have to decide now on the model we will live by. We must answer the question: is this the pre-crisis model? Does it suit? Are we going to live by it? A model with high inflation and very high dependence on the price of oil. Or do we need to make a more stable economy, one less dependent on the price of oil," he said.