At present, officials in Russia show no active plans to reform the personal income tax (PIT) regime by introducing a broader set of changes to the tax brackets or rates. Yet, the leadership within the Ministry of Finance continues to assess how a progressive tax structure might be implemented in practice, evaluating the potential benefits and risks before any formal decision is taken. These considerations were voiced by Alexei Sazanov, who serves as deputy head of the ministry, as reported by Prime Minister’s office sources. The remarks underscore a cautious approach: officials are examining whether a more graduated PIT could deliver targeted fiscal support while maintaining overall tax stability. They emphasize that no immediate steps are being taken to shift toward a different taxation framework for individuals, and discussions are centered on understanding actual consequences rather than pursuing quick policy shifts. The dialogue reflects a broader government interest in ensuring that any reform would be fiscally responsible and administratively feasible, with attention to how reforms might affect revenue reliability, compliance, and economic behavior across different income groups.
Currently, the standard PIT rate remains at 13 percent. In parallel, a higher rate of 15 percent applies to residents whose annual income exceeds five million rubles, with the additional revenue generated by this higher rate earmarked for programs benefiting children with rare diseases. This earmarking illustrates how tax policy can be designed to support social goals while preserving the existing tax structure for the majority of earners. Officials have reiterated that such measures are linked to targeted social outcomes rather than a wholesale alteration of the tax system. The government stresses that the 15 percent segment is not intended as a blanket increase for all high earners, but as a mechanism to channel resources toward critical health initiatives that can improve access to specialized care for vulnerable populations.
In discussions reported by officials, there was a statement that even if calculations suggested a potential to raise as much as two trillion rubles by lifting the rate from 15 percent to 30 percent, no such figures have been confirmed. The ministry indicated that any consideration of a more aggressive increase would require robust, verifiable data demonstrating substantial revenue gains without triggering adverse effects on investment, labor supply, or net tax compliance. As a result, the ongoing review centers on the feasibility of a progressive scale rather than immediate changes to PIT. The ministry pointed to the need for careful modeling and consultation with fiscal authorities to ensure that any proposed shift would be both fiscally prudent and administratively practical, preserving confidence in the tax system and avoiding unintended burdens on households and businesses.
On May 24, statements from Alexei Sazanov, deputy head of the Ministry of Finance, reaffirmed the stance that there are no current plans to introduce a staggered PIT in Russia. The ministry clarified that it is not entertaining proposals to alter the tax framework in this sector. This clarification aligns with a broader political discourse in which lawmakers from different factions have urged reforms at various times, but the executive branch has remained cautious. There is recognition that any reform would require comprehensive analysis and cross-ministerial coordination before a public position could be taken. The emphasis remains on maintaining tax system stability while exploring options for better alignment with social policy goals, rather than rushing into changes that could complicate compliance or erode revenue predictability.
Earlier discussions within the Communist Party group highlighted a desire to modify the PIT rate for a specific category of citizens. Such proposals reflect the ongoing tension between revenue needs, social equity, and administrative practicality. Ultimately, the government is weighing whether a more progressive structure could deliver improved social outcomes without undermining competitiveness or revenue stability. The current approach prioritizes evidence-based evaluation, transparent modeling, and careful stakeholder consultation as essential steps before any potential reform is considered for implementation. The governing framework thus remains focused on incremental, data-informed analysis rather than rapid, sweeping changes to the PIT regime.