The government of the Russian Federation in the framework of the fight against poverty considering the introduction of a progressive scale of tax on income of physical persons (NDFL), Vice-Premier of the Russian government Olga Golodets.

“Today we are going discuss about personal income tax. And I believe that to overcome poverty exemption in the lower scale of income tax is one of the most important steps. We have this measure calculated, and we are discussing today”, – quotes the Golodets TASS.

Golodets also reported that the government of the Russian Federation in 2017 will be to work in a special program aimed at reducing poverty among the population. “We have now marked the continuing decline of incomes, but from January 1 we will adopt a number of measures that have already been budgeted, it is primarily the higher wages in the public sector, where we have the most difficult situation to date, and increase the level of pensions: is the lump sum payment and indexation of pensions, which will be held for all retirees. This is the most important element,” she said.

However, she noted that the increase in incomes depends also on changes in the economic situation in the country. “Real wage depends on the real economy. So if there is a change in the economic sector, then we may hope for a change of the situation with wages. Today, the economic bloc is making every effort to change the current trends in our economy,” – said Golodets (quoted by “Interfax”).

According to Rosstat, in October, the income of Russian citizens has decreased by 5.9% compared to the same month in 2015. In September, the decline was recorded at 1.5%.

As discussed the introduction of a progressive personal income tax

Since 2001, Russia has a flat income tax, which is 13% regardless of the income level of the taxpayer. Reports of the discussions of the various authorities the possibility of introducing a progressive scale of personal income tax from time to time appear in the media.

Recently, Finance Minister Anton Siluanov said that to discuss the possibility of transition in Russia to a progressive scale of personal income tax in the current economic conditions is unreasonable. According to him, in the current difficult circumstances, when reduced real income of the population, when companies often difficult financial position, changes in the procedure of levying personal income tax will stimulate a care in the shade of salaries.

However, the Minister did not rule out that the change of taxation may be considered after 2018, when stabiliziruemost economic situation in the country.

In February, the newspaper “Kommersant” wrote that the Ministry of economic development did not support the idea of introducing a progressive income tax. Prime Minister Dmitry Medvedev in the report to the state Duma in April, however, claimedthat the government is not going to raise taxes until 2018.

Later, the Deputy Minister of labor and social protection Andrey Pudov said that the authorities are again discussing the possibility of introducing a tax for able-bodied but unemployed Russians.

In may, several Federal officials told the newspaper The Wall Street Journal that may be increased personal income tax (pit) and VAT. According to one source, the government can introduce a progressive scale of taxation.

In August, sources of the newspaper “Izvestia” reportedthat the Russian government is ready to discuss the return of a progressive scale of tax on income of physical persons (NDFL). As stated, we are talking about citizens with high incomes who will pay more into the budget of the current 13%. In particular, increasing the scale to 20%.

Then the newspaper “Vedomosti” wrotethat the purpose of replenishment of the budget the Ministry of Finance suggested raising of all key taxes, including income. To collect the money was offered with oil, Gazprom, tobacco workers and so on. However, the ideas of the Ministry of Finance were then rejected, and the authors of the proposal was even accused of misanthropy, wrote the publication. In particular they were unhappy with, in particular, the first Deputy Prime Minister Igor Shuvalov and Deputy Prime Minister Arkady Dvorkovich, told reporters a the official.

Later in October, “Kommersant” wrotethat the Finance Ministry is in favour of maintaining the current configuration of tax system of Russia for the next three years and against changes in income and other taxes, at least in 2017.



The government is discussing the introduction of a progressive scale of personal income tax, said the Golodets 21.11.2016

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