Russia’s State Duma votes to approve income tax rises for the better off

Deputies in the lower house of Russia’s parliament, the State Duma, have unanimously voted in favour of a bill that will raise income tax rates for millions of better off Russians, the chamber’s press service announced on Wednesday.

The bill, which has now passed its third and final reading in the Duma, introduces a progressive rate of income tax rate for those with an annual income of over 2.4 million rubles (€25,000).

Those whose salary is below that threshold will continue to pay a standard rate of 13% income tax, while anyone earning more will see their income tax rate rise to between 15% and 22%, the latter being the top tax band for those earning over 50 million rubles (€525,000) annually.

The bill also reduces the income tax rate for low-income families with two or more children, and includes a clause capping the income tax rate for Russian troops, conscripts, and various other state employees whose work relates to the war in Ukraine at 15%.

In addition to raising income tax rates for the better off, corporation tax is set to rise from 20% to 25%.

The Finance Ministry says the changes will affect about 2 million Russians and will bring in an additional 2.6 trillion rubles (€27.3 billion) to state coffers in 2025.