Raising Personal Income Tax Rate Will Affect 1% of Russians: Siluanov

The share of working citizens of the Russian Federation who will be charged an increased personal income tax rate of 15% will not exceed 1%, Finance Minister Anton Siluanov said in an interview with the Vesti news program on the Russia 1 TV channel.

“The draft laws are ready. We expect that they will be adopted during this autumn session. How many citizens will be subject to increased taxation? According to our estimates, their number will be no more than 1% of all working citizens,” he said.

Siluanov stressed that for other categories of citizens, the terms for levying personal income tax will not change, TASS reported.

According to the minister, the funds that will be obtained as a result of the increase in the tax rate are included in the new federal budget. “This is about 60 billion rubles ($801 mln). This part will be spent on assistance and treatment of children with complex expensive diseases,” he said.

On September 16, the Russian government considered a bill on raising personal income tax to 15% for citizens’ incomes over 5 million rubles ($66,764) a year.

On June 23, President Vladimir Putin proposed raising personal income tax from 13% to 15% for people with annual incomes exceeding 5 mln rubles per year starting from January 1, 2021.

He emphasized that “not all income will be taxed at an increased rate, but only the part that exceeds 5 mln rubles per year”, and it will give the budget about 60 bln rubles, which will be used for the treatment of children with rare diseases.