According to the newspaper Wall Street Journal, the change in the tax system the officials associated with the desire to solve problems with the budget amid falling oil prices. “There is a debate about how to make it so that taxes didn’t look excessive and not hurt the population,” – said the source publication.
In particular, the WSJ source familiar with the discussions, reported that the government is considering the introduction of a progressive scale of taxation, which would mean increasing taxes for people with higher incomes. Another source told the publication that the speech can go about preserving the flat rate taxation, but with the level increase from the current 13% to 20%.
Both men said that the discussion and the VAT increase, but any changes will only happen after the presidential elections in 2018, as the decision will be political.
In early February, the newspaper “Kommersant” reported that the Ministry of economic development did not support the introduction of a progressive income tax. Two sources in the government in late January reported that the economy was not included in the turnaround plan and the proposal to limit the level of payment the top-managers of state companies on the basis of market level.