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. Last Updated: 07/27/2016

Tax Scofflaws

According to Finance Minister Vladimir Panskov, the government is preparing a decree to toughen tax collection. The minister said that the document includes a number of "very strict measures" against those systematically not paying taxes and those who conceal profit from the State Taxation Service.

The decree is a result of the present budget crisis. According to the finance minister, at present only 60 percent of levied taxes make it to the state treasury. ...

Despite the titanic efforts of the State Taxation Service, tax collection indexes fall every month, and an end to the dangerous trend is not yet in sight. Economics Minister Yevgeny Yasin says that the growth of the Russian budget deficit reached a record high this year. Government officials on all levels explain the budget collapse as a result of the presidential election's influence on the economy, which, as Mr. Yasin stated, "proved to be unpredictably strong."

The decree is practically the government's first serious reaction to the budget crisis.