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. Last Updated: 07/27/2016

Tax Collection Up in First Quarter

The government collected 90 percent of the taxes owed it in the first quarter of 2001, a dramatic improvement over last year's 60 percent tax collection rate, media quoted Prime Minister Mikhail Kasyanov as saying Thursday.

Russia has been battling poor tax collection for the past decade as many businesses and individuals have hid their earnings from authorities. Kasyanov said poor tax collection was in part to blame for the country's 1998 financial crisis.

Tax revenues have risen to 15 percent of gross domestic product from 9 percent to 10 percent three years ago, Kasyanov told a Cabinet meeting, Interfax reported.

Last year, parliament passed legislation that established a flat income tax rate of 13 percent.

Economic Development and Trade Minister German Gref said on a visit to Washington the flat rate had helped to increase tax revenues, Itar-Tass reported.