A Little More of Taxes, A Lot More of Evasion

Raising payroll tax has boosted revenue a bit and evasion a lot.

Income from compulsory social insurance contributions has grown by 1% of GDP. Is has been expected, though, that the tax hike from 26% to 34% would bring in a ‘much greater gain’, acknowledged Finance Minister Anton Siluanov.

The takings from income tax have fallen by tenth. Revenues are falling, said the Economic Development Minister Elvira Nabiullina, and more companies are switching to the ‘grey salaries’.