The government rejected the project to introduce a progressive tax scale

The government rejected bill on the introduction of a progressive taxation scale in Russia, announced Interfax with reference to the conclusion. On October 3, the document was submitted to parliament for consideration by the chairman of the State Duma Committee on Social Policy, Yaroslav Nilov (LDPR).

The document proposed abolishing income tax for citizens who earn 360 thousand rubles a year. or less (about 30 thousand rubles per month) and raise tax rates for those who earn over 10 million rubles. per year (approximately 833 thousand rubles per month). Personal income tax of 13%, according to the document, should be applied when earning up to 5 million rubles. Income up to 10 million rubles. assumes a fixed tax of 603 thousand rubles. and 15% of the amount exceeding 5 million rubles. The document obligated citizens with an income of more than 100 million rubles. pay 35% of the excess of this amount plus 26 million rubles.

The explanatory note to the project stated that a progressive tax scale would increase budget revenues and mitigate the problem of social inequality. From 2021, Russia has an increased tax – 15% – for citizens whose income exceeded 5 million rubles. in year. The Ministry of Finance then announced that there were no plans to change the personal income tax scale in the near future.

Read more in the Kommersant article. “Taxes are being progressively increased”.