TAX REVENUE FALLS.

Publication: Monitor Volume: 2 Issue: 63

The Russian government’s ability to collect taxes seems to be falling. In February and March, the federal government’s tax income reportedly fell below 5 percent of GDP. This is partly the result of a slowing of inflation, which reduces nominal profits and therefore the profits tax collected by the state. It may also be the effect of a "tax holiday" being taken by enterprises in anticipation of a possible change of government in June. This behavior