Bobby do not know much about sheckel . As far as Russia is concern
you got to be kidding? or making fun of me?
IMF lashes out at Russian tax system, sees growth
02:18 p.m Apr 13, 1998 Eastern
WASHINGTON, April 13 (Reuters) - The International Monetary Fund lashed
out on Monday at Russia's inability to keep tax policies on track,
criticizing a complex tax structure, weak administrative rules and an
inadequate legal framework.
''Russia exemplifies many of the fiscal problems that still confront
countries less advanced in transition,'' the IMF's semi-annual World
Economic Outlook said in a special section on Russia's fiscal
challenges.
''Progress in tax reform in Russia has been inadequate. The tax system
remains complex, with up to 200 types of taxes, numerous and sometimes
arbitrary exemptions, narrow tax bases and...high statutory taxes on
labor income.''
But the IMF commended Moscow for its monetary policies, saying it was a
''key area of success in terms of Russia's macroeconomic policy.''
''Sustaining that accomplishment and the confidence that it helps bring
is something that's very important for the Russian economy,'' IMF Chief
Economist Michael Mussa told a news conference.
The IMF stressed the importance for Moscow to maintain a consistent
exchange rate policy.
''Russia relies on capital inflows to help finance its budget deficit,''
Mussa said. ''It needs to provide some reasonable assurance that the
foreign exchange market will not become a source of uncontrolled
instability for both domestic and foreign investors.''
The IMF projected Russian economic growth of 1.0 percent this year after
0.4 percent growth in 1997. It expected Russian inflation to slow to 8.0
percent from 15 percent in 1997.
The lending institution singled out the energy sector as one area with a
number of shortcomings, and said energy taxes were lower than in
comparable oil and gas producing countries. It said a new government tax
code would help improve matters.
Prime Minister-designate Sergei Kiriyenko said last week that the new
tax code should be passed into law by September. The document has not
yet been approved by the conservative State Duma lower house of
parliament.
IMF lending to Russia has stalled several times over recent years
because the IMF is worried about low tax revenues.
Russian central bank officials said earlier on Monday they had signed a
new statement on economic policy for 1998 that was key to unlocking IMF
funding this year.
''The persistent weakness of revenue and the pervasive problems of ad
hoc expenditure cuts and arrears reflect fundamental weaknesses in tax
policy, tax administration and budgetary management,'' the IMF said.
((IMF newsroom, +1 202 898-8329, fax +1 202 898-8383,
washington.economic.newsroom+reuters.com)) ^REUTERS@ |
