The new tax scale in Russia will most likely lead to an increase in tax rates and new benefits for citizens. This opinion was expressed in a conversation with socialbites.ca by Viktor Machekhin, candidate of legal sciences, leading researcher of the Tax Policy Research Laboratory of the Presidential Academy.
“The transition to a progressive tax system in Russia primarily involves the application of increasing rates for people earning higher incomes. This system was used in the USSR and in Russia in the 90s. A few years ago, a rate of 15% was added to the flat rate of personal income tax (13%), which had been in force for almost 20 years, meaning that elements of the progressive system have already begun to return.”
According to him, apparently we are no longer talking about the previous symbolic “+2%”, but about more radical changes in the amount of tax rates. The gradual implementation of increased tax rates on personal income can be expected to provide a variety of rates and be accompanied by the emergence of new investments and expansion of existing investments, social cuts and other benefits, Machekhin said.
According to him, conversations about the need to introduce a progressive system of taxation of citizens’ income in Russia (more precisely, a return to this system) have been going on since the beginning of the century, along with the transition to the “circle”. tax scale. The lawyer described this as a “natural and modern desire”, adding that such a system now works in almost all developed and large economies. In Russia, this will allow solving many problems at once: reducing property inequality, meeting the corresponding demand of society, replenishing the budget and at the same time expanding the potential of tax incentives for individuals. Because such incentives are always more effective at high tax rates.
The new tax system in Russia will be implemented as of January 1, 2025, reported March 1, member of the State Duma Committee on Budget and Taxes Evgeny Fedorov.
Russian President Vladimir Putin in his speech to the Federal Assembly on February 29 offered To introduce a differentiated taxation system in the Russian Federation.