RUSSIAN CABINET SAYS IT WANTS TO PULL 2 TRN ROUBLES AWAY FROM THE POPULATION

HomeNewsRUSSIAN CABINET SAYS IT WANTS TO PULL 2 TRN ROUBLES AWAY FROM THE POPULATION

Russian citizens continue to receive huge shadow income, the government believes. The total volume, according to various estimates, ranges from 15% to 21% of the GDP, said Deputy Prime Minister Tatyana Golikova.

According to her, in 2017, Russians spent 13.3 trillion Roubles more than they received officially.

Part of this amount is “unpaid taxes”, Golikova complained. According to her, about 15 million people work in the 'grey economy' sector, with no income tax or social security contributions. These are the people who either run unregistered businesses or receive cash in an envelope for a salary. As a result, the state funds (of social, medical and pension insurance) loose 2.3 trillion Roubles every year, the Deputy Prime Minister observed.

The state's economic and financial departments works to reclaim these 'grey receipts' from the shadow economy, affirmed Golikova.

As of January 1 this year the government runs a pilot project offering registration to the self-employed in the regions of Moscow, Tatarstan and Kaluga. According to the latest data of the Federal Tax Service, some 102.000 people are participating. This amounts to a turnover of nearly 7.6 billion Roubles, considerably lower than the amount expected by the budget experts, commented Golikova.

Personal income tax enlarging the tax base remains one of the reserved methods for the further growth of financial burden in favour of the treasury. In addition, it is still necessary to establish order with the electronic payment systems, with the cadastral listings and the real estate objects.

In Russia, the state collects 37% to 39% of GDP to the budget, which is the level of the European Union and does not provide for a fast growth of economy. However, the question is also about the further distribution of these resources. Russia occupies 118th place globally in terms of healthcare support (5.6% of GDP), just under half behind the leader, Norway (10% of GDP).