VLADIMIR PUTIN
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VLADIMIR PUTIN

Media Review

19 april, 2011 13:39

Komsomolskaya Pravda: "Trade unions oppose haste in reducing taxes"

Putin promised to discuss the social issues with working people’s associations.

On Monday Prime Minister Vladimir Putin met with Chairman of the Federation of Independent Trade Unions Mikhail Shmakov.

Putin recalled that the government had discussed most social issues with trade union representatives. He mentioned the current work on drafting a new law on healthcare and a reform of the labour remuneration system at schools.

"I hope that we will continue to work in this direction," Putin said.

"Unfortunately, sometimes employers try to push their ideas through other channels," Shmakov complained. "Nevertheless, the latest proposal to reduce contributions to social funds to 26%..."

He said it is unclear how to compensate for the government's revenue shortfall due to the reduced tax (starting this year instead of paying a social tax of 26%, employers will have to make deductions for the social funds totaling 34%).

Vladimir Putin: "But we haven't made any decisions yet."

Mikhail Shmakov: "It's good that no decision has been made... I would like these issues to be discussed in detail before any decision is taken. These decisions shouldn't be rash."

Vladimir Putin: "Mr Shmakov, I understand your concern, but I want to reassure you that this is exactly the tack we will take." He added that a reduced tax will be a heavy burden on the state.

"Mr Putin, ironically, we are also concerned with the serious pressure on businesses," Shmakov voiced his concerns. "There is more to talk about."

"And we will talk. We plan to move forward in these areas, in dialogue with the trade unions," Putin summed up.

Andrei Lvov