State Duma Speaker Vyacheslav Volodin said that the progressive tax scale will not affect participants in the war in Ukraine. This was reported by RBC.
A progressive tax scale implies an increase in tax depending on the income of the population. Thus, the higher the income of an individual, the higher the tax (personal income tax) this person must pay.
Volodin explained his proposal by the fact that participants in the war in Ukraine "defend the country and receive rewards for their exploits." He called the increase in the personal income tax rate for war participants "unacceptable."
Volodin's idea was supported by the head of the Ministry of Finance, Anton Siluanov: "The Ministry of Finance supports the idea of not extending the new progressive scale of personal income tax and the new rates of this tax to the income of "SVO" participants." According to him, the ministry "will propose a reasonable progression of personal income tax so that the Russian tax system is competitive in comparison with neighboring countries."
Siluanov noted that in the tax reform the department should be guided by the principle that changes in the tax reform will not affect the majority of citizens. "At the same time, families with two or more children who have low incomes should benefit," the minister added.
In addition, Siluanov stated that the Ministry of Finance does not plan to raise VAT: “We support the proposal of deputies and businesses, voiced during the consultations held, not to raise VAT rates, the growth of which could lead to an acceleration of inflation.”
Siluanov also claims that additional revenues received as a result of changes to the tax system should be used to increase social payments, support for motherhood and childhood, and social infrastructure.
Parliamentary hearings on tax reform are currently taking place in the State Duma. As Kommersant notes , changes in the Russian tax system are taking place on the orders of Vladimir Putin.
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