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OF THE RUSSIAN INVESTMENT FORUM

Gref: Russia needs a tax system with a lower burden on business

18 April 2017

The Russian Federation needs a tax system with a lower burden on business and also needs to cancel tax inspections for law-abiding businessmen, Sberbank CEO Herman Gref said at the national conference Online Classes – New Opportunities for Growth, per Prime news agency.

“We need carrots and we need to lower the tax burden. We need to reduce administrative pressure and we need to eliminate tax inspections if a business is entirely transparent. What are tax experts doing there”, the head of Russia’s biggest bank said.

The volume of information exchanged by companies and the tax service should be reduced, he said.

“There should be fundamentally different tax legislation related to both administration as well as the amount of the fiscal burden. We currently have a huge fiscal burden and it not only consists of the nominal rates that we pay attention to, but also puts an enormous amount of pressure on business, which is generally organized with shortcomings in all types of procedures”, Gref said.

The tax burden in Russia is comparable with the tax burden in developed European nations, he said.

“We can get rid of this entire fiscal burden, which one could say is mended together based on imperfect procedures, using this kind of relationship between the government and business. Such an ecosystem is currently being built between the tax service and business. I think this is a good example for everyone else”, Gref added.

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