According to Russian Finance Minister Anton Siluanov, the Russian government has no plans to alter the personal income tax in the next three years. The minister opposes progressive taxation because “large billionaires will find a method to evade taxes,” and “the middle class would suffer”, Kommersant writes.
“We are usually extremely cautious about altering the taxing process in terms of personal income tax, and for the next three years, for which we are reviewing the budget, we do not intend any changes in this area,” Mr. Siluanov said in a statement to the State Duma Committee on Budget and Taxes.
The lawmakers observed that the earnings of Russia’s wealthiest people had increased in recent years. They inquired if the government intends to adopt a progressive taxation system to address the country’s poverty issue.
“Big billionaires will find a method to evade taxes, and the middle class will suffer as a result… Business selects countries, and these jurisdictions are often near to us – we have Kazakhstan and Belarus – which suggest a totally different degree of taxes, including paying labor. As a result, from an economic standpoint, these problems must be handled with great caution,” he said.
On September 30, the administration presented a draft budget to the State Duma. When developing the financial plan for 2022–2024, the Ministry of Finance began with the current nearly deficit-free budget execution, adding a full return of “budget rules,” reducing the impact of the pandemic with a reduction in social support costs, returning inflation to the Bank of Russia’s target, global recovery growth, and NWF investments.