Tax Ministry's official comments on tax arrears

The volume of tax arrears to the consolidated budget of the RussianFederation amounted to 245.1bn rubles ($7.78bn) as of July 1, 2002, whichwas 7.8 percent lower compared to the beginning of this year, SergeyKhursevich, head of the tax arrears department of the Russian Tax Ministry,declared at a press conference today. According to him, the amount of latepayment interests and penalties on these arrears was 229bn rubles ($7.27bn)on July 1, 2002. Khursevich pointed out that the volume of tax arrears tothe consolidated budget of the Russian Federation was 378bn rubles ($12bn)on July 1, 2001. The amount of late payment interests and penalties was413bn rubles ($13.11bn).The official stressed that an important role in the increase in revenues ofthe budget system played payments on restructured debts. According to him,the federal budget received 48.5bn rubles ($1.54bn) in payments onrestructured debts by July 1, 2002.Value-added taxes' share in the total volume of tax arrears is 44 percent.Profits taxes' share is 20 percent, taxes on the use of natural resources -4 percent, other federal taxes - 20 percent, regional taxes - 7 percent andlocal taxes - 4.5 percent. Industry's share in the total volume of taxarrears is about 50 percent, the construction industry's share is 11percent, trade - 8 percent, the housing and communal services - 4 percent,agriculture - 3.9 percent, communications - 0.3 percent..