World Bank says Russian liquor and tobacco taxes should rise as poverty jumps
Published: 25 June, 2009, 10:23
Edited: 10 January, 2010, 06:33
TAGS: Investment, Regional development, Russia and the global economy, Economy
The World Banks says the economic crisis is boosting poverty in Russia, with the number expected to increase by 5% this year to 17% of the population.
It says the unemployment rate will hit 13% by the end of the year, as it downgraded Russia’s GDP forecast – saying the economy will contract 7.9% this year – with a similar gap between government spending – and its income.
Zhelko Bogetich. The World Bank’s Chief economist for Russia, says Russia could boost the budget revenues through tougher tax policy.
“Essentially you try to review the tax base of these instruments and try to eliminate any unnecessary exemptions, and special exceptions that reduce the tax base, right, that’s one. And the other, you could review some of the levels of excises, especially so called sin taxes – the liquor and tobacco taxes for example – that are usually very good revenue instruments in most countries, and in Russia they tend to be lower.”
25.06.2009, 10:12
Central bank believes Russian economy is close to bottoming outThe Central Bank could lower its re-finance rate once again in July, says its re-elected head Sergey Ignatiev. The rouble could weaken further, but there are no evident reasons for that. |
25.06.2009, 10:30
Russia’s ultra rich take hammering with their global peersThe wealth of the world's rich and ultra-rich population has dropped by 20 % to $33 trillion. |
The World Bank is completely right and that is the way used in any nation with a high standard of living and long life expectancy. It is essential also Western-style commercials agains drunk driving. Every year 35,000 people die in Russia from car accidents and another 25,000 are injured. In Spain, with a third of the Russian population (46 million people Spain and 142 million people Russia) less than 2,000 pepole died last year from car accidents. Just if the number of casualties in Russia is reduced to Spain´s levels that would mean 1 million people more in the labor market. If Russia had a level similar to Spain, the number of deads would be reduced from 35,000 to 6,000, saving almost 30,000 lifes, 300,000 lifes in a decade (apart from 2 million people injured) and that has an effect in Russia´s demographic statistics obviously, apart from saving billions of $ in Social Security and to insurance companies.
So more poor people means we need higher taxes. All that is going to do is increase smuggling, bootlegging and other crimes as people try to survive retched poverty just try to get a pack of smokes to enjoy and a drink to ease their troubles. Considering that the world bank and IMF are responsible from turning so many economies from growing to corrupt corporate oligarchies no one should be listening to their advice. Even by their own admission their work only improves the economies of the countries they pillage about 40% of the time and even that seems like a high-ball figure. Why, oh why does anyone give any credit to the advice of these evil organizations?
Enrique, you are so wrong!!!The U.S. had it's greatest economic boom in history from 1946 to 1971; under the Bretton Woods $35/oz international gold standard; and during that entire time smoking was completely free everywhere up until 1964; and even into the 1980's, it was still possible to smoke everywhere indoors except elevators, movie theaters, public buses, and a few other enclosed places.
The legal limit on alcohol was 0.15 in many places before 1971 as well; which was pretty drunk by today's standard of 0.08; and it wasn't enforced that much back then either.
This smoking ban has no relationship whatsoever with a "high standard of living"; and acting like it is; is a very nasty lie to be telling the Russian people; and the ultimate hypocrisy for a Westerner.
You know god damn well that a smoking ban is very negative for any economy. Don't sit there and pretend like it's the road to prosperity or long life; especially when the U.S. economy has been going straight downhill ever since 1973; and is about to reach the bottom of the abyss in a just a few short years.