The Budget and Tax Committee of the State Duma proposed setting the lower threshold of the progressive scale of personal income tax at a level not lower than twice the average monthly nominal wage in Russia. The authors of the initiative believe that this will eliminate the increased tax burden for most Russians.
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According to the document, the State Duma committee recommends setting the lower threshold of the progressive scale of personal income tax based on income exceeding twice the average monthly nominal wage in the Russian Federation in the interests of a “reasonable and fair progression.”
According to Rosstat, the average salary in Russia at the end of 2023 was 73,709 rubles. That is, the lower progression threshold can be set at a level slightly lower than 150 thousand rubles.
“It is important that the increase in the tax burden does not affect the vast majority of Russians,” the recommendations say.
Currently, in Russia there is a two-stage personal income tax scale: the tax is 13%, and for income over 5 million rubles per year – 15%.
The Budget and Tax Committee of the State Duma recommends not increasing rates from the current two-stage scale, but rather introducing a multi-stage tax system, “which will facilitate the transition from one category to another.”
This spring, Bloomberg wrote that Russian authorities are discussing raising personal income tax to 15% for citizens with an income of 1 million rubles a year and up to 20% for people earning more than 5 million rubles. year.
Author:
Akhmed Sadulayev
Source: RB
I am a professional journalist and content creator with extensive experience writing for news websites. I currently work as an author at Gadget Onus, where I specialize in covering hot news topics. My written pieces have been published on some of the biggest media outlets around the world, including The Guardian and BBC News.
