The state Duma proposed to return to a progressive income tax


A group of deputies from LDPR in the state Duma introduced draft amendments to the Tax code offering now to replace the existing flat rate tax on incomes of physical persons (personal income tax) progressive. This method of calculating tax involves fold increase in rates on the growth of taxable income.

The bill proposes to fully exempt from personal income tax of people earning not more than 15 thousand rubles For individuals with an annual income of 180 thousand rubles to 2,4 million rbl. the bill proposes to retain income tax rate at 13%, but tax not all income, but only that part that exceeds 180 thousand rubles per year.

For people with revenue from 2.4 million to 100 million rubles per year, the deputies propose to establish a tax rate of 289 thousand RUB + 30% from the sum exceeding 2.4 million RUB If the annual income exceeds 100 million rubles, he will have to pay as personal income tax 29.6 million RUB + 70% from the sum exceeding 100 million rubles, follows from the bill.

In the explanatory note to the bill States that the exemption for the poorest sections of the population and use of the increased rate at taxation of “windfall” will be “one of the ways to reduce income inequality of the population.”

Currently Russia applies a flat tax scale with a rate of 13%. According to Rosstat, the nominal average Russian salary in June amounted to 38,59 thousand RUB Employee with a salary now gives the Treasury a little more than 5 thousand or 60.2 thousand rubles per year. In the case of the bill, the amount of the tax burden will be reduced to about 3 thousand per month or 36.8 thousand rubles per year. The winner of the annual income of 5 million rubles. in the case of the bill will pay a tax of 1.07 million rubles. instead of 650 thousand rubles., as it is now, and the winner of the annual income of 200 million rubles will have to pay is not 26 million rubles., and more than 99.5 million RUB.

The developers of the amendments also note that the flat rate personal income tax was introduced in Russia (in 2001) to increase the level of collection of income tax, however, the effect was not as expected. “Currently, the increase of a collecting of tax is mainly due to the poorer citizens, which entails a steady growth in the income gap between the richest and poorest segments of the population”, — emphasized in the explanatory Memorandum.

In 2013, the return of a progressive scale of personal income tax did not exclude the President of the country Vladimir Putin. “Maybe someday we will implement some elements of this differentiated scale. We never said that century introduced a flat rate. It is also possible,” he said. Meanwhile, Putin noted that the flat rate personal income tax is “the best way to combat tax evasion” is the envy of the leaders of those countries, which uses a progressive scale.

Later first Deputy Prime Minister Igor Shuvalov said that the amendments to the system of taxation of incomes of physical persons could be “appropriate” after the presidential election in 2018, when the outcome of the current political cycle.”

“No tax policy, nor in the discussion we do not set any goals, a specific timeline for the introduction of a progressive scale of taxation. But no one can rule out that something will happen. The question is when: in 2018, maybe in 2020, in 2025?” — commented on the possibility of reform, Finance Minister Anton Siluanov.