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    Deputy Speaker of the State Duma Chernyshov proposed to increase personal income tax for wealthy Muscovites to 20%

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    Boris Chernyshov, deputy speaker of the State Duma from the Liberal Democratic Party and candidate for mayor of Moscow, sent a letter to the head of the Federal Tax Service, Daniil Yegorov, proposing to increase the personal income tax rate to 20% “mainly for wealthy Muscovites.” He announced this in his Telegram channel.

    The deputy recalled that in Russia for more than a year there has been a progressive taxation scale for citizens who earn more than 5 million rubles a year. Their income is subject to personal income tax at a rate of 15% instead of 13%.

    “To improve social justice, it is time to increase the tax rate for rich people,” wrote Chernyshov.

    In his opinion, Russians who earn more than 25 million rubles a year or more than 2 million a month must pay personal income tax in the amount of 20%.

    “It would be cunning not to admit that the new rates will affect mainly the rich residents of Moscow,” the deputy says.

    In his opinion, additional revenues to the budget should not be “washed out” by different items of expenditure. The MP proposed to allocate 2% to help seriously ill children through the “Circle of Kindness” fund, and 3% to finance the development of peripheral areas of municipalities.

    “One of the symbols of the idle and luxurious life of the capital is the Patriarch’s Ponds area … I consider it fair if the “Patricia tax” will be directed to the development of areas that are not so popular, but no less significant for us,” wrote Chernyshov .

    He listed the metropolitan areas of Butovo, Pechatniki, Tekstilshchiki, Golyanovo, Biryulyovo, Kapotnya and New Moscow, stating that infrastructure and landscaping should be financed, among other things, through a “wealth tax”.

    Smooth social injustice

    Expert of the Russian Institute for Strategic Studies, Candidate of Economic Sciences Mikhail Belyaev, in an interview with Gazeta, noted that discussions about changing the personal income tax rate have been going on for a long time.

    “We have a rather serious gap between people who receive a low income and those who receive a high income,” Belyaev noted. According to him, taxes are designed not only to replenish the budget, but also have a social function – they smooth out social disproportion.

    “People do not react very calmly to the fact that someone earns more, [therefore] an increase in the personal income tax rate can be perceived as an increase in fairness,” the expert said.

    He also noted that the Russian budget, in the face of sanctions and military operations, additional revenues are “simply necessary”.

    “Our budget needs additional revenues, because it is in deficit or close to being in deficit, the sources of its replenishment have been exhausted to a certain extent,” Belyaev noted.

    He pointed out that there would be “the strongest opposition” to raising the income tax. Opponents of the measure say it undermines business activity. If the tax rate is raised, he said, the second part of the reform is to ensure that people do not evade paying the tax.

    “These should be economic sanctions, so that it would be more profitable to pay the tax than to pay off the sanctions later. If there is no second part, then we can assume that all this is another empty, non-working initiative, ”concluded Belyaev.

    Not the first proposal

    In May, deputies from the Communist Party of the Russian Federation, headed by Gennady Zyuganov, submitted to the State Duma a bill to increase the personal income tax rate to 30% for incomes over 10 million rubles a year.

    In the accompanying note to the document, the authors stated that thanks to the reform, the budget would receive an additional 650 billion rubles annually. They also recalled cases when the state helped companies survive crises.

    “Now, when the country is going through hard times, the main consumers of the budget and the ruiners of the country do not consider it their duty to save the branch on which they have been parasitizing for so many years,” the deputies wrote.

    In an official document of wealthy Russians and businessmen, the communists expressed the opinion that “people who have robbed the country for 30 years” will not “give back the loot” themselves.

    The government gave a negative opinion on the bill, stating that the innovation could lead to wages going into the shadows and reducing tax revenues. Experts also see risks in the communist proposal, including an increase in tax evasion.

    “I’m afraid this is pure populism. Moreover, the income level of 10 million rubles, in my opinion, is still extremely low in order to establish such a high personal income tax. And most importantly, if such a tax is introduced, people will simply go into “black” accounting,” Eduard Savulyak, director of the Moscow office of Tax Global Consulting, told Kommersant.

    Tax on excess business profits

    On June 28, the State Duma adopted in the first reading a bill on a one-time withdrawal to the treasury of 2.5 thousand large Russian firms of at least 300 billion rubles in the form of tax on previously received excess profits.

    The innovation consists of two legislative acts. The first introduces an amendment to the Tax Code that federal laws can establish one-time taxes, and the second regulates the tax itself.

    According to the draft, companies with an average pre-tax profit for 2021-2022 of more than 1 billion rubles will pay. Companies established after 2020, small and medium-sized enterprises, payers of the unified agricultural tax are exempt from tax. Oil and gas and coal companies will be exempted from paying excess profit tax, since additional tax exemptions are already provided for them this year. Not only depositors. Who else is eligible for the new tax benefit Owners of deposits in Russia have been exempted from income tax (13%). It turned out that under the new benefit… 28 March 17:10

    Deputy Finance Minister Alexei Sazanov, in an interview with RIA Novosti, did not rule out the possibility of levying a tax on excess profits in the future, if “a situation arises hypothetically when there are such excess incomes and the need to finance a large deficit.”

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