A proposal to raise the personal income tax for individuals earning more than 25 million rubles annually is seen as a way to strengthen the national budget while promoting social equity. This view was voiced by Mikhail Belyaev, a Candidate of Economic Sciences, in an interview with socialbites.ca. He commented on the initiative put forward by Boris Chernyshov, Deputy Chairman of the State Duma from the LDPR, to lift the personal income tax from 13% to 20% for wealthy residents of Moscow.
Belyaev noted that the issue has lingered for some time, attracting supporters from various corners and provoking opposition from those who argue that higher personal tax rates could dampen business activity. Yet he emphasized that the budget needs additional revenues, especially in light of sanctions and ongoing military operations. He argued that surplus taxes can fulfill a social role by easing the gap between low and high earners. In his view, people react differently to high incomes, so raising the tax rate could be perceived as a move toward greater fairness. He also stressed that the plan requires careful management to prevent unintended consequences.
According to Belyaev, the proposal will rely on strict enforcement and meaningful penalties against tax evasion. He asserted that taxes are compulsory and that evasion is a serious offense against the state. Therefore, he called for robust oversight to ensure that compliance is more profitable in the long run than avoiding payment. Without a firm enforcement framework, he warned, the effort might resemble another empty gesture.
On June 29, it was reported that Chernyshov sent a letter to the Federal Tax Service proposing a 20% personal income tax rate for the top tier of earners in Moscow, targeting those with annual incomes exceeding 25 million rubles. The deputy also highlighted a progressive taxation approach for Russians who earn more than five million rubles, who would already be subject to a 15% rate instead of 13%. He argued that the additional 5% on income above 25 million rubles would help advance social justice in the tax system.
Previously, the State Duma approved a bill at first reading concerning a tax on excess profits of Russian companies. The new 10% levy was set to impact businesses with average profits above one billion rubles in 2021 and 2022. This broader context shows an ongoing effort to adjust fiscal policy to new economic realities and geopolitical pressures, while balancing revenue needs with concerns about market activity and fairness. (Sources: parliamentary statements and economic analyses cited by the participants)