Meeting with Federal Taxation Service Head Daniil Yegorov

President of Russia Vladimir Putin: Good afternoon. Please.

Mr Yegorov, I have reviewed the materials. Over the ten months of this year, the Russian budget has received almost 46…

Head of the Federal Taxation Service Daniil Yegorov Yegorov DaniilHead of the Federal Taxation Service : Almost 46 trillion rubles.

Vladimir Putin: Forty-six trillion rubles. That is some 20 percent more than in the same period last year, is that correct?

Daniil Yegorov: Yes, that is correct. This is eight trillion rubles more in revenues than last year. This amount includes both budgetary and non-budgetary funds. The federal budget has shown perhaps the best result, with revenues growing by almost 30 percent. The situation around hydrocarbons certainly contributed to this outcome.

However, when it comes to non-oil and gas revenues…

Vladimir Putin: Some seventeen percent?

Daniil Yegorov: Even 20. Twenty-one percent, to be precise. That is a decent result, at least for now. We plan to maintain this rate until the end of the year, earning another eight trillion rubles. Our goal is to achieve 55.6 trillion across the entire budget, the entire budgetary system and, naturally, to achieve all budgetary goals.

I also think it is important to note that things are quite good with personal income tax - this is basically made up of the Russian citizens' incomes.

Additionally, the value-added tax has shown a 22-percent increase. The sales tax has also grown by 22 percent, coincidentally. There is a correlation because income is related to consumption and VAT is a tax on consumption.

As for the sales tax, if you will allow me, I would like to point out a few important things. Our retail sector is changing very significantly, with many e-commerce platforms emerging. When we initiated the cash register reform, only six percent of sales companies operated online. Now, their share has reached 42 percent, including major companies.

Vladimir Putin: Online?

Daniil Yegorov: Yes, they operate using remote delivery.

Vladimir Putin: The revenues are multiplying, correct?

Daniil Yegorov: Yes, they are multiplying. We are witnessing drastic shifts in the market.

To be continued.