An Overview of Normative Documents on Taxation Issues for July-August 2014

Abstract

In the period under consideration, as a result of restrictions imposed by Russia on food imports from those countries that had introduced sanctions against the Russian Federation or those that have joined the anti-Russian economic policy, the domestic market was being artificially limited. This inevitably pushed up food prices. Now the "people’s deputies" are putting forth proposals to the effect of imposing legislative constraints on product profitability and price level. If such a law is actually passed, it can be expected that certain types of goods will be in deficit, because in a situation of absence of an "iron curtain" coupled with the ruble’s depreciation against foreign currencies Russian products will be exported to those markets where they can be sold at reasonable market prices; as a consequence, the Russian market will have to make do with goods unsellable in other markets. Thus, if we choose to rely on direct administrative methods – that is, follow the deputies’ suggestion and introduce price regulation – the situation can only become worse, so that soon products will have to be rationed, and the population will once again have to stand in long lines just to get food and other "bare necessities".