Boris Chernyshov, deputy head of the State Duma for the Liberal Democratic Party and a candidate for Moscow mayor, wrote to Daniil Yegorov, head of the Federal Tax Service, proposing a rise in the personal income tax rate, aiming it to reach 20 percent for the wealthiest Muscovites. He shared this through his news telegraph channel.
Chernyshov reminded readers that Russia already uses a progressive tax scale for citizens earning more than 5 million rubles annually. Those with higher incomes are taxed at 15 percent instead of 13 percent. “It’s time to raise the tax rate for rich people to improve social justice”, he asserted.
He argued that Russians earning 25 million rubles per year or more than 2 million rubles per month should pay personal income tax at 20 percent. “It would be clear that the new rates will primarily affect affluent residents of Moscow”, the deputy commented.
In Chernyshov’s view, additional budget revenues should not be dissipated through various line items. He suggested allocating 2 percent to help seriously ill children via the Circle of Goodness fund and dedicating 3 percent to finance municipal development and surrounding areas.
“One symbol of the capital’s idle and luxurious life is the Patriarch’s Ponds area. It is important to us”, Chernyshov wrote.
He named metropolitan districts such as Butovo, Pechatniki, Tekstilshchiki, Golyanovo, Biryulyovo, Kapotnya, and New Moscow, arguing that infrastructure and landscaping projects should be funded by a wealth tax.
Fix social injustice
Economic analyst Mikhail Belyaev, a specialist at the Russian Institute of Strategic Studies, noted in an interview with socialbites.ca that the debate over raising the personal income tax rate has persisted for some time. He pointed to a noticeable gap between low and high incomes, saying taxes serve not only to replenish the budget but also to balance social disparities.
“People don’t react calmly when someone earns far more than they do”, he remarked. He suggested that raising the rate could be perceived as a move toward fairness. In light of sanctions and military operations, he added, the Russian budget needs additional revenue.
He also mentioned strong opposition to higher taxes, warning that if the rate rises, a second reform step would be crucial to prevent tax avoidance.
“Economic measures should make paying taxes more advantageous than evading them. Without a second part, the proposal risks becoming an empty exercise”, Belyaev concluded.
not the first offer
In May, deputies from the Communist Party led by Gennady Zyuganov petitioned the State Duma to increase the personal income tax rate to 30 percent for incomes above 10 million rubles per year. They argued that the reform would boost the budget by about 650 billion rubles annually and recalled past state support for troubled companies during crises.
They asserted that during hard times, the main budget contributors and those who harmed the country should share the burden, urging the wealthier classes to contribute more. An official document from wealthy Russians and businessmen suggested that those who extracted wealth for decades would not voluntarily return it.
The government opposed the bill, arguing it could suppress wages and reduce tax revenues. Experts warned of risks, including higher tax evasion. A prominent tax advisor cautioned that such high rates could drive activity underground and undermine the economy.
business surplus income tax
On June 28, the State Duma approved at first reading a bill to extract at least 300 billion rubles from 2,500 large Russian companies as a one‑off tax on excess profits from the recent period. The proposal comprises two pieces of legislation: an amendment to the Tax Code enabling one‑time taxes and a separate law detailing the tax itself.
The plan targets companies with average pre-tax profits above 1 billion rubles for 2021–2022. New firms founded after 2020, small and medium enterprises, and taxpayers using a uniform agricultural tax would be exempt. Oil, gas, and coal sectors would also be exempt from this year’s excess profits tax due to existing exemptions.
Deputy Finance Minister Aleksey Sazanov told DEA News that future excess profits taxes could be considered if circumstances create a need to finance a large deficit.
Cited sources explain that the discussion around adjusting personal taxation mirrors a broader effort to balance fiscal needs with social equity while maintaining a competitive economy in the face of sanctions and external pressures. [Citation: Policy analyses and official statements compiled for current fiscal debates.]