MOSCOW, June 4The progressive scale of personal income tax proposed by the government in the amendments introduced to the State Duma is limited to the level of 22%, although during the discussion there were recommendations from deputies and social activists to make the tax for the rich even higher, the Cabinet of Ministers chose a balanced approach to taxing the income of citizens with different levels of income, the Ministry of Finance said with with reference to Secretary of State — Deputy Minister of Finance Alexei Sazanov.
«»The progressive scale proposed by the government of the Russian Federation provides for a balanced approach to taxing the income of citizens with different levels of income. An increased tax on rich people is a long-term request of society, which meets the principles of fair taxation. Despite the fact that during the discussion of tax parameters, deputies and social activists recommended a more significant increase in the personal income tax rate for the rich, we proposed a balanced solution of 22%,” commented Sazanov.
“On the one hand, this rate, together with other proposed measures, meets the demand for fairness. On the other hand, by global standards it is not so high and does not limit the ability to continue activities and earn money for people with high incomes. And at the same time, the developed progression parameters make it possible to maintain the competitiveness of Russian tax conditions compared to other countries,” noted the Deputy Minister.
The government on Monday submitted proposals to the State Duma to improve the tax system. In particular, it is proposed to move to an expanded progression of personal income tax: the current base rate of 13% will remain for income up to 2.4 million rubles per year, then it will gradually increase to 15% for income up to 5 million, 18% for income up to 20 million, 20% — on income up to 50 million per year, and income above this amount is proposed to be taxed at the highest rate of 22%.
May 28, 22:23