Experts: the introduction of a progressive personal income tax rate may lead to deterioration of the situation of poor Russians
The poor Russians may be even more deplorable if the Russian government will approve the introduction of a progressive scale of tax on income of physical persons (NDFL), experts say. The day before that authorities in the fight against poverty are working on the issue, said Vice-Premier of the Russian government Olga Golodets.
Golodets suggested that to overcome poverty exemption in the lower scale of income tax is one of the most important steps. “We have costed this measure and we are discussing today,” she said. The statement of Deputy Prime Minister caused a stir in the press. Articles on this topic on Tuesday, write the Headlines.
Experts warn that, contrary to expectations, the decision of the government on this occasion may have the opposite effect – the situation of the poor will worsen. According to the article in “Nezavisimaya Gazeta” Deputy head of the Department of economy of edition Anastasia Bashkatova, first, no increase in incomes, this reform does not imply, and secondly, the abolition of taxes, many Russians will lose their so-called tax deductions to pay for the treatment, training, purchase of housing.
If the authorities in the current economic conditions will go to a new tax reform, they will make it with only one purpose – to increase revenues to compensate for the drop in oil prices and export revenues, the author notes.
The first result of the reform for low-income citizens will be the reduction or complete abolition of most tax deductions, the report says. Currently, tax deductions can be assigned to certain groups of citizens (citizens with children, the disabled, military personnel), as well as certain actions of the citizens – buying an apartment on credit, training, treatment.
Deductions are calculated according to special formulas that take into account the rate of income tax. By reducing this rate will be reduced in proportion to the deductions, including the complete resetting in the event of cancellation of the income tax. In this case, the poor will be even more vulnerable than the rich, for which deductions will continue and will increase after the pit rate.
For example, the author notes, the reduction in deductions may become citizens who will take a mortgage. They are entitled to the deductions and the purchase of the apartment, and to pay interest on the loan. Despite the fact that the deductions may not exceed certain amounts, the savings on income tax allows people to return some of the funds and direct them, for example, on the early repayment of the loan. If the poor will be exempted from paying income tax, these benefits will lose.
The newspaper “Moskovsky Komsomolets” writes that experts do not agree with the decision that the government could take. So the Director of analytical Department of “Alpari” Alexander Razuvaev considers that the rate of personal income tax to remain on the same level, and to fight poverty it is necessary with the growth of public expenditure, that is, accelerated indexation of wages and pensions.
Since 2001, Russia has a flat income tax, which is 13% regardless of the income level of the taxpayer. Since then, repeatedly in mass media there were messages on the discussion with the authorities the possibility of introducing a progressive scale of personal income tax.