Vladimir Putin condemns tax on card payments

Russian President Vladimir Putin said that the charge on card payments for goods and services is a quasi-tax which hinders the economy, RBC reports.

The President believes the commission charged by issuing banks on points of sale (3% for each transaction) is extremely high.

“In some countries they charge 0.2%, not even 0.3%. We charge 3%. Of course, it is too much and, of course, it is a quasi-tax,” Putin said at the Delovaya Rossiya forum.

The President believes these charges hinder the economic growth. This issue is particularly relevant considering the popularity of card payments. Despite the trend, the average cash bill in the retail and HoReCa sector is growing. Obviously, companies prefer to take cash in order to minimize the impact of the quasi-tax. Specifically, according to Platforma OFD, last month the average hotel bill for cash payments was 14% higher year-on-year while the average card payment bill, on the contrary, decreased by 7%. A similar situation is happening in restaurants and bars.

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