Putin attempts to boost business with tax collector attack

RUSSIAN President Vladimir Putin tried to boost business confidence yesterday, reassuring skittish investors during his state of the nation address that rules governing the privatisation of state property and tax collection would not be constantly shifting.

In the annual address, Mr Putin said tax inspectors do not have the right to "terrorise business" and he called on the government to lower the time limit for challenging the results of past privatisation deals from 10 years to three.

Some foreign investors have been unnerved by recent government moves to hand massive back-tax bills to Russian businesses particularly in the lucrative oil sector, attack a politically ambitious business tycoon and allegedly backtrack on democratic reforms, analysts said. However, Mr Putin emphasised yesterday that Russia needs foreign investment and the "rules of the game" must be clear to attract it.