It is highly likely that the law on abolishing the long-term deposit tax will be passed before the end of 2024. This forecast was given to socialbites.ca by Andrei Loboda, economist and communications director at BitRiver.
“This measure will encourage long-term savings, partially help reduce inflation and help many Russians create a ‘financial safety net’ for the future. Therefore, it would be beneficial for the state to enact such a law,” explained the economist.
According to him, the budget will not suffer much loss, since most Russians keep money on deposit for six months to a year.
“If such a law is passed, there may be longer term deposits in banks. Their share may grow to approximately 10% of total deposits. With the strong ruble policy, long-term deposits will become more attractive. The expert stated that if there is another noticeable increase in the depreciation of the Russian currency, investors will use other instruments with short-term investment periods.
On February 5, Deputy Chairman of the Federation Council Dmitry Zhuravlev supported the idea of u200bu200bthe Russian Ministry of Finance to abolish income tax on long-term deposits in order to stimulate demand for them. The initiative was expressed by the ministry in September, but no final decision has been made on this issue yet.
Previously expert explainedHow will the demand for long-term bank deposits change?