The government is considering increasing tax revenues from the wealthy category, media sources said. In one of the scenarios, the introduction of a progressive scale of personal income tax is considered. For citizens with an income of more than 2-3 million rubles a year, personal income tax can grow up to 15%. The government refutes this information.
A few Forbes sources participating in these discussions argue that the issue of different taxation options for different categories of citizens was actively discussed in the winter. The interlocutor of the publication says that various moves were analyzed even before the president’s message, which took place in January 2020.
“There are more than ten different options, the presidential administration and the government have a ready-made scenario, if necessary, you can simply get it and apply it,” Forbes quoted the official as saying.
As a solution to this problem, it was proposed to increase the personal income tax rate for the rich from 13% to 15%. The question of what amount of citizen’s earnings should be levied on personal income tax on the upper bar remained open. There were proposals to tax the annual income of 2-3 million rubles with the maximum tax rate, the source said. For the poorest part of society, with an income in the amount of a living wage or a little more, it was proposed to completely cancel personal income tax. At least such proposals were contained in scenarios sent to the presidential administration, Forbes experts say.
“We believe that it is not abrupt, but nevertheless it would be advisable to return to differentiation of income tax .. It should be increased. At the same time, we would suggest considering a reduction in income tax for the poorest part of citizens, ”Andrei Isaev, the first deputy chairman of the United Russia faction in the State Duma, told reporters.
The deputy at the same time cautioned against introducing “exorbitant amounts” of tax for wealthy citizens.
The Forbes interlocutors in the government assure that the tax for the rich is not necessary to replenish the budget due to quarantine expenses, but in order to direct this money to social programs – to support poor citizens or pensioners.
In essence, there are no documented decisions on this issue, Forbes sources say. It is also important that the Ministry of Finance opposes this reform.
“If the increase in the tax rate is small, then the additional revenue from the change in the rate will be small, but the administration will be difficult,” the source explained to the Finance Ministry.