State Duma says Russians are hiding their income due to falling living standards

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Commenting on the statistics of the Ministry of Finance on the reduction of value-added tax revenues to the budget, Mikhail Delyagin, Deputy Chairman of the State Duma Committee on Economic Policy, suggested that people hide their income by “going into the shadows.” The deputy expressed it as follows: broadcasting radio station “Speaks Moscow”.

“Economically, we withstood the blow, the situation stabilized … It is clear that part of the population has moved to self-employed and individual entrepreneurs or has been overshadowed,” Delyagin said.

He added that people are going into the shadows, not from the good life. Delyagin explained that the problem is the falling standard of living of the people.
“So it’s all a drop in income. Less than 20 percent, but there is,” summarized the deputy.

According to the Ministry of Finance, personal income tax revenues in the January-March period of this year decreased by 20.2% compared to the same period of the previous year.

Economist Vladislav Zhukovsky in April aforementioned The newspaper Izvestia reported that over the past year the quality of life of the Russian middle class has deteriorated by an average of 40-50%. If we buy medicine, clothes and equipment and electronics, tourist trips for seven thousand rubles when it is possible to fly to Spain with Pobeda, we can really talk about a 40-50% decrease in the purchasing power of interest. Zhukovsky noted. Public Opinion Foundation in May spent survey and 19% of Russians reported a deterioration in their financial situation. 10% of Russians stated that their financial situation has improved.

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