Russian Premier Orders Import Tax Hike to Placate the IMF
Frustrated by parliamentary resistance, Prime Minister Sergei V. Kiriyenko ordered higher import taxes Saturday in an effort to raise new revenue and win Russia a $17.1-billion loan from the International Monetary Fund.
“Unfortunately, the parliament didn’t pass all the necessary measures,” Kiriyenko said. “That means that we’ll have to solve some of our problems . . . by decree.”
The Duma, parliament’s lower house, recessed for the summer Friday without passing several key elements of the government’s economic plan. The IMF has said it will not release the new loan money until a complete austerity plan is in place, especially new taxes.
Kiriyenko ordered a 3% increase in all import duties, which the government estimates will bring in another $160 million.
In addition, President Boris N. Yeltsin signed a decree Saturday to consolidate the government’s holdings and control over the alcohol industry, whose taxes make a significant contribution to the federal budget.
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