Russia’s wealthy elite could face higher income tax as authorities propose a new, progressive system

Russia's wealthy elite could face higher income tax as authorities propose a new, progressive system

AP
First Published29 May 2024
Russia's wealthy elite could face higher income tax as authorities propose a new, progressive system
Russia’s wealthy elite could face higher income tax as authorities propose a new, progressive system

MOSCOW — Russia's wealthy elite could face higher income taxes, according to a proposal the country's finance ministry floated on Tuesday.

The proposal, which would likely have to go through parliament for approval and subsequently a signoff by President Vladimir Putin, comes as Russia continues to spend vast amounts of money on the military campaign in Ukraine.

The proposal involves a progressive tax on personal incomes and represents a change of course from the current flat-rate tax that was credited with bringing order and improving tax collections after it was introduced in 2001.

It envisages imposing a 13% tax for incomes of up to 2.4 million rubles a year. For incomes over that amount, a steadily higher tax rates would apply. The maximum tax would be 22% for annual incomes exceeding 50 million rubles .

The increased taxes would affect only 3.2% of Russia's working population, Finance Minister Anton Siluanov said on the ministry’s website. The 2.4-million-ruble level is about three times higher than the country's average salary, he said in a commentary.

"The proposed progressive scale should not concern the overwhelming majority of the population,” he said.

The 13% flat tax was put into effect in an attempt to discourage tax evaders and boost the state's revenue. In 2021, Russia modified the system so that people earning more than 5 million rubles a year would pay 15% on the amount above the threshold.

That new tax brought in an extra 8.3 billion rubles the first year it was imposed, the Russian business news site RBC reported.

This article was generated from an automated news agency feed without modifications to text.

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.MoreLess
HomeNewsworldRussia’s wealthy elite could face higher income tax as authorities propose a new, progressive system

Most Active Stocks

Indus Towers

334.00
10:29 AM | 19 JUN 2024
-9.9 (-2.88%)

Bharat Electronics

309.30
10:26 AM | 19 JUN 2024
-8.95 (-2.81%)

HDFC Bank

1,658.00
10:24 AM | 19 JUN 2024
49.25 (3.06%)

Tata Steel

180.05
10:25 AM | 19 JUN 2024
-1.1 (-0.61%)
More Active Stocks

Market Snapshot

  • Top Gainers
  • Top Losers
  • 52 Week High

Alok Industries

29.50
10:27 AM | 19 JUN 2024
2.15 (7.86%)

Jubilant Ingrevia

554.95
10:16 AM | 19 JUN 2024
39.85 (7.74%)

Triveni Engineering & Indus

413.75
10:29 AM | 19 JUN 2024
28.85 (7.5%)

Shree Renuka Sugars

51.22
10:29 AM | 19 JUN 2024
3.47 (7.27%)
More from Top Gainers

Recommended For You

    More Recommendations

    Gold Prices

    • 24K
    • 22K
    Bangalore
    73,281.000.00
    Chennai
    72,711.000.00
    Delhi
    73,495.000.00
    Kolkata
    73,566.000.00

    Fuel Price

    • Petrol
    • Diesel
    Bangalore
    102.86/L0.00
    Chennai
    100.75/L0.00
    Kolkata
    103.94/L0.00
    New Delhi
    94.72/L0.00
    OPEN IN APP
    HomeMarketsPremiumInstant LoanGet App