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Russia Joins List Of Countries Seeking More Tax Revenue From Google, Apple
Amid growing financial deficits Russian government sees American companies as source of revenue.
Countries across Europe have been seeking more tax revenue from US tech companies such as Google and Apple. Google and Apple have so far agreed to pay several hundred million dollars to the UK and Italy, with more such agreements likely to follow.
Now, Russia is trying to get in on the action. According to Bloomberg, the Russian parliament is now considering a bill that “would apply an 18 percent value-added tax to as much as 300 billion rubles ($3.9 billion) of revenue that Google, Apple and other foreign companies earn each year.”
The move is partly motivated by Russia’s difficult economic situation and “biggest fiscal deficit in six years.” Declining oil prices and Western economic sanctions have taken a toll and created a recessionary environment in the country.
The Russian government under Vladimir Putin has systematically tightened control over Russian media, rolled back press freedoms and sought to exert influence over the internet and online content. Accordingly, the government has sought to compel US companies to house all Russian-related internet data on servers within the country.