Peskov: it’s too early to announce the Kremlin’s position on a progressive tax scale

It is premature to talk about the Kremlin’s position on the issue of a progressive scale of taxation of personal income, said presidential press secretary Dmitry Peskov.

“It would be wrong for us to declare a position now before the people’s representatives hold their discussions in committees and so on. Therefore, it is too early to talk about the Kremlin’s position,” Peskov clarified when asked whether the Kremlin believes that the time has come for this.

October 3, Chairman of the State Duma Committee on Labor, Social Policy and Veterans Affairs Yaroslav Nilov (LDPR) reported on introducing into the lower house a bill on a progressive scale of taxation of personal income. According to the text of the document, it is envisaged to introduce tax rates from 0 to 35%. A zero rate is offered for incomes less than RUB 360,000. in year. The maximum rate of 35% is proposed for income over RUB 100 million.

According to Nilov, this is an “expected step” that can not only increase tax revenues to the federal treasury, but also mitigate the problem of social inequality.

Since 2021, a progressive personal income tax scale has been in force in Russia: income tax for individuals with incomes of more than 5 million rubles. per year is 15%, for other Russians the rate remained at the same level – 13%. Prior to this, the country had a single 13% personal income tax rate for 20 years. A similar tax has been introduced on income from deposits or investments worth more than 1 million rubles.