In Russia, a proposal emerged to raise the limit for claiming a property tax deduction when purchasing a home. Under current rules, up to 2 million rubles can be counted, returning 13 percent, which amounts to a maximum of 260 thousand rubles. The initiative was forwarded by the federal company Etazhi to Prime Minister Mikhail Mishustin and the Ministry of Finance, according to the publication News that cites the document.
Etazhi’s director, Ildar Khusainov, told the outlet that the last increase occurred in 2008, when the deduction cap rose from 1 million to 2 million rubles. Since then, housing prices in Russia have climbed notably, with an overall rise around 124 percent, and since March 2020 alone, roughly 52 percent. Khusainov suggested raising the limit to 6 million rubles. He noted that major cities like Moscow, St. Petersburg, the Moscow region, the Leningrad region, and several northern and Far Eastern locales tend to have higher average prices per square meter, while other regions would see the cap increased to 4 million rubles. Consequently, the resulting deductions would scale from 6 million to 4 million rubles, translating to refunds of about 520 thousand to 780 thousand rubles.
According to the press service of the Council of Ministers, the government apparatus received the letter and forwarded it to the Ministry of Finance for processing. The ministry indicated that it has received objections and that the proposals will be reviewed following established procedures.
Vladimir Koshelev, First Deputy Chairman of the State Duma Committee on Construction and Housing and Utilities, told the publication that he supports the move. He emphasized the need to create favorable conditions to boost housing affordability for Russians. Koshelev also argued for simplifying the process of registering tax breaks.
Earlier reports indicated plans to submit to the State Duma a bill that would allow self-employed individuals to receive a property tax deduction when purchasing real estate.
News is being updated as new information becomes available.