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RUSSIA MAY IMPOSE A TAX ON CASH TRANSACTIONS

[2/21/17]  As the war on cash continues, Russia has recently considered methods to reduce the amount of cash transactions in an effort to extinguish the “shadow economy and corruption that comes from money laundering and tax evasion.”

Per a recent article from Russia Today:

According to the newspaper, the ministries are considering banning the payment of salaries in cash, limiting large cash purchases or introducing a cash tax.

Officials want to limit cash purchases of real estate, cars, and luxury items, but the cut-off price is being discussed. The economists are also looking at examples of India and Azerbaijan that limit not only cash transactions, but also cash withdrawals.

In January, the Russian media reported the government is considering setting a single cash purchase limit at 500,000 rubles (about $8,750 at the current exchange rate). Minister of Finance Anton Siluanov backed the initiative without specifying the limit.