The Cabinet of Ministers did not support the proposal of the RSPP to raise income tax instead of a single contribution

The Russian government did not support the proposal of the Russian Union of Industrialists and Entrepreneurs (RSPP) to increase the income tax rate instead of a one-time voluntary tax contribution to the budget, the press service of the Ministry of Finance reported.

Additional market revenues were formed not in the entire economy as a whole, the Ministry of Finance noted, but only in its individual sectors and among individual taxpayers. Because of this, the effect of the measure proposed by business for different industries will be unequal.

“Here, first of all, it is necessary to consider those who have made super profits over the previous two years and, on this basis, make a decision on the contribution, which is expected to be voluntary from the members of the RSPP,” the Ministry of Finance stressed.

They also stressed that the government is not considering a change this year in the income tax rate, VAT, personal income tax, property taxes, special regimes, and insurance premiums.

Earlier, The Bell (recognized as a foreign agent) reported that in December the government offered businesses to make a one-time payment to the budget of 200-250 billion rubles. Business came up with a counterproposal to increase the 20% income tax on Russian companies by 0.5 percentage points in 2023, the publication reported.

Today, February 8, First Deputy Prime Minister Andrey Belousov announced that the government discusses with large businesses, a one-time voluntary tax contribution to the budget. We are talking about the so-called windfall tax (windfall tax). According to Belousov, many Russian companies showed “very good” financial results last year, especially in the first half of the year. According to a source close to the government, we are talking about 250 billion rubles.

Bloomberg previously wrote that in December the government proposed a “revenue mobilization”, among the measures discussed was an increase in dividends for state-owned companies and lump sum payments from large companies.