The Seminar on Capital Movement in the Member-States of the Customs Union Wednesday

During the seminar, reports were made by Natalia Kornienko, Yelena Velikova and Svetlana Gulyaeva -- employees of the Tax System Development Department of the Gaidar Institute -- on the issues of tax harmonization in the Customs Union, the prospects of harmonization of the currency legislation and credit legislation and legal regulation of entrepreneurial activities in the territory of member-states of the Customs Union.

In her report: The Topical Issues of Excise Taxation of Tobacco Products, Natalia Kornienko made an emphases on the need of further reduction of the price affordability of cigarettes for the population within the frameworks of measures aimed at harmonization of the excise policy of member-states of the Customs Union. In particular, it was established that the dynamics of growth in excise rates inside the Customs Union varied a great deal: in the 2012-2014 period high growth rates of excises on tobacco products were registered in the Russian Federation, while lower ones, in the Republic of Belarus. In the Republic of Kazakhstan, growth rates of excises on tobacco were much lower. According to the expert, further efforts are required to carry out harmonization of the excise policy of the Customs Union in order to limit the overflow of tobacco products from countries with the minimum rate of excises to markets of other member-states of the Customs Union and stop growth in smuggled products on the Russian market.

In her report, Yelena Velikova highlighted the legal aspects of lending in member-states of the Customs Union and conceptual lending differences by the state, carried out a comparative analysis of interest rates on loans and looked into the issue how repayment of loans is ensured. In addition to the above, the expert touched upon the issues of credit information and the financial ombudsman and made proposals on upgrading of the credit legislation.