LDPR proposes zero tax for low incomes; analysis and context

A group of deputies from the LDPR faction has put forward a bill to the State Duma that would eliminate personal income tax (NDFL) for residents whose monthly earnings fall below 30,000 rubles. The information was reported by TASS, citing the relevant draft document.

The sponsors propose amending Article 217 of the Tax Code of the Russian Federation so that individuals earning less than 30,000 rubles a month would face a zero tax rate on personal income. The intention behind this change is to increase the amount of take-home pay for low earners and thereby improve living standards for that segment of the population.

The Liberal Democratic Party representatives emphasized that 30,000 rubles marks the threshold they consider optimal for waiving income tax. This level is roughly double the current minimum wage, which stood at 16,242 rubles per month as of the start of the year. In the deputies’ view, this cut would constitute a meaningful financial lifeline for families and households with modest incomes.

Earlier, the Commission on Legislative Activities of the Government of Russia requested a final assessment of the bill to abolish personal income tax for incomes under 30,000 rubles per month. The commission also suggested refining the provision that currently excludes certain groups from the tax relief program.

The draft bill was developed by State Duma deputies from the LDPR faction and was forwarded to the Cabinet for review in June of this year. The party argued that removing income tax for this group would expand family budgets, contributing to higher consumer spending and stimulating broader economic activity within the country. If enacted, officials indicated the reform could take effect at the start of the year following the review process.

Under the present system in the Russian Federation, the personal income tax rate stands at 15 percent for individuals with annual earnings above a defined threshold, while a 13 percent rate applies to others below that level. This structure shapes how households plan their finances and how savings and consumption are balanced across income groups.

Gazing ahead, observers in Russia and abroad have weighed the potential effects of such a tax change on household budgets, spending patterns, and macroeconomic stability. The discussions illustrate ongoing policy debates about how best to support low- to middle-income families without overburdening the broader tax base or limiting revenue for essential public services. The outcome of the proposal will hinge on the cabinet’s review and any subsequent legislative adjustments that may emerge during parliamentary scrutiny.

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