Families with children at the end of the year will even be able to return part of the money paid in the form of cashback from the state
The Ministry of Finance is literally squeezing out information drop by drop about the specific parameters of the planned tax innovations. Large parliamentary hearings in the State Duma lasted more than 4 hours, but did not answer the main question: what will be the minimum threshold and rates of the progressive scale of personal income tax. In discussions about fairness, two news voiced by Anton Siluanov almost drowned: “reasonable progression” will not affect SVO participants and owners of bank deposits in terms of taxation of income received from them.
Photo: duma.gov.ru< /span>
State Duma Speaker Vyacheslav Volodin immediately warned that the hearings would discuss the concept, not the parameters, of the new tax system. The conversation about specific numbers is still ahead (spoiler: during the discussion it was said that it would supposedly begin next week. But this is not accurate). A discussion of general principles, according to Volodin, is necessary so as not to feel shame for the decisions made. “We hope that the government will take into account the proposals made when preparing legislative initiatives,” the speaker said, recalling that large parliamentary hearings are held only on the most important issues in the life of the country.
The line-up of key speakers was not much different from Monday's Budget Committee panel meeting discussing tax innovation. The same people came up to the podium and said approximately the same things. The head of the Ministry of Finance, Anton Siluanov, again emphasized fairness and focused not on the essence, but on the afterwords of the changes. He promised that everyone would feel the effect: the funds received “will be used for social purposes and solving the most important problems for people.” They will be used to build housing, increase social benefits and provide support to business.
Siluanov recalled that the progressive personal income tax scale is not an innovation, but a global practice. “In our neighbors” rates reach 25%, and in “far abroad countries – up to 45–55%.” “We will offer reasonable progression,” the head of the Ministry of Finance assured. The vast majority of Russians, he said, will not be affected by the rate increase. And priority categories, in particular families with children, will even be able to return part of the money paid in the form of cashback from the state at the end of the year.
The Minister enthusiastically supported Vyacheslav Volodin’s proposal not to extend the progressive personal income tax scale to SVO participants. “Our fighters need our attention and support. And if we can do this through tax proposals, this will definitely be done,” Siluanov said. Let us remind you that SVO participants practically do not pay personal income tax. The corresponding decisions were made back in 2022. Income tax is levied only on part of a fighter’s monthly allowance, as well as on the financial assistance assigned upon receipt of a state award. Apparently, it is these payments that are supposed to be withdrawn from the progression if the total amount exceeds (which is unlikely) the annual limit set by the authorities. Siluanov also said that the taxation of income received from bank deposits will not change. Just as investors paid 13% of the amount exceeding the non-taxable amount, they will continue to pay. “This is aimed at stimulating citizens to create savings. The measure also has a social aspect, so as not to affect the majority of citizens who keep their savings in banks,” the minister explained. The planned adjustments to the tax system, according to Siluanov, are expected to be fixed until 2030 (i.e., before the end of Vladimir Putin’s current term). At the same time, the innovations will not affect 10 million self-employed: the government will keep its promise not to change anything for them for 10 years (i.e. until 2028).
The proposals that were made during the further discussion can be divided into three groups. Businesses asked that, along with an increase in the tax burden, the package of legislative initiatives include a tax amnesty for those who follow the rules of the game and conscientiously fulfill the wishes of the authorities. Entrepreneurs would like to see the transition from the “simplified” rules to the general rules as smooth as possible while maintaining the opportunity for those who will not be able to “grow” under the new conditions to return back. The income tax rate, according to the hearing participants, should be floating and depend on the volume of investment. This will encourage businesses to invest in the development of production and regions. Judging by the speeches, business expects that from the current 20% the rate may rise to 25%, or even 30%.
In turn, the regions asked the Ministry of Finance to give them the majority of the personal income tax. And also to make the tourist tax not an experiment, but a full-fledged local tax (here, however, a dispute arose about who exactly should introduce the payment for visitors and administer it — regional authorities or municipalities, which are chronically short of money).
Parliamentary factions tried to defend the interests of citizens before Siluanov. “New people” stated that annual incomes are up to 5 million rubles. should not fall under the “reasonable progression” announced by the ministers, otherwise a normal middle class will never be formed in the Russian Federation. The LDPR proposed expanding the line of “tax deductions” to include, in particular, a deduction for the treatment of pets. The parliamentarians also called, along with the participants of the SVO, to remove teachers and doctors from the progressive scale of personal income tax.
Everything related to the burden on citizens, the head of the Ministry of Finance commented very sparingly and reluctantly. But he promised to consider the possibility of introducing a tourist tax (let us remember that in some regions it is now being replaced by a very uniquely interpreted resort tax: for example, in St. Petersburg, all visitors, including business travelers (!), pay 100 rubles per day). Anton Siluanov assured that the government has heard all the proposals and will try to take them into account if possible. “The main thing is that our views coincide: we have the same assessments of the understanding of the fairness of the tax system and what needs to be changed,” the head of the Ministry of Finance summed up the hearings.