PIT abolition bill for incomes under 30k rubles moves toward Duma approval

A bill proposing the abolition of personal income tax for citizens earning under 30 thousand rubles per month is set to be submitted to the State Duma. The move will be led by deputies from the Liberal Democratic Party, according to TASS. The plan targets a specific earnings band, aiming to eliminate PIT for those who fall below the threshold and to ease the financial burden on lower-income households across the country. The authors intend to refine the Law on Amending Article 217 of the Tax Code of the Russian Federation to reflect this change, arguing that keeping more take-home pay would directly translate into a higher standard of living for many Russians. The proposal emphasizes that a zero tax rate for this group would simplify budgeting for families and individuals who are currently navigating tight monthly budgets. The LDPR team argues that this threshold is practical because it sits roughly around the line that separates lower-income earners from the rest, and they believe the impact would be both noticeable and meaningful for people trying to stretch every ruble further by the end of the month. Izvestiya previously noted that during the second quarter of this year, personal income tax revenues began to accumulate in the budgets of fifteen regions, rebounding after the downturn in early 2023. The report highlighted that the Chuvash Republic posted the strongest growth in PIT receipts for that period, rising by about fifteen percent compared with the same timeframe in 2022, a sign that tax collections are on a recovery path as the economy stabilizes. The proposed policy would, if enacted, narrow the PIT burden for a wide swath of households while maintaining a stable revenue framework for regional budgets and public services that depend on tax income. The authors stress that the new framework would be designed to provide tangible, direct financial relief to millions of citizens who live close to the poverty line or just above it, potentially easing consumer pressure and supporting local economies in the near term. This initiative reflects a broader debate about tax relief as a lever for household resilience and economic mobility in an environment where wages and living costs continue to diverge. While the plan focuses on a clear income threshold, it also invites discussion about broader tax reform and how best to balance fairness, simplicity, and revenue needs across regions and sectors. The public conversation surrounding PIT reform continues to unfold as lawmakers weigh the short-term benefits of immediate relief against the long-term goals of fiscal sustainability and equitable taxation for all citizens. The broader context remains one of gradual fiscal adjustment in a recovering economy, where policy developments at the federal and regional levels could influence how income taxes shape household budgets in the years ahead. Izvestiya’s coverage and TASS’s reporting contribute to a growing chorus of analysis about where PIT relief could fit within current economic priorities and how it might interact with social support programs and wage growth strategies for the coming months. As discussions progress, observers will be watching for details on eligibility, administration, and the potential effects on both regional budgets and national tax receipts, with the hope that the policy design will maximize positive outcomes for low- and middle-income families.