Russia mulling tax increase on App Store purchases, other Apple services

The Russian government is considering a bill that would increase taxes on a dozen categories of digital products and services offered by foreign companies like Apple, including ads, games, movies, marketplace transactions and cloud computing, Bloomberg reports. In a recent interview described as “peppered with expletives,” Russian Internet Czar German Klimenko said he is pushing to raise the taxes to level the playing field for Russian competitors, following the lead of other European countries. “When you buy an app from Google Play or the App Store anywhere in Europe, VAT is charged at the place of payment, but not here in our banana republic,” Klimenko said. The new bill proposes an 18 percent value-added tax on an estimated $3.9 billion in profits earned on digital media and services by Apple, Google and other foreign technology companies. Klimenko also railed against Apple’s compliance with U.S. sanctions on Russia after the country annexed Crimea, calling that decision “the point of no return.” Apple declined to comment on the proposed tax increase.