Photo: Artyom Korotayev / TASS
The Ministry of Finance and Minekonomrazvitija together with experts to discuss various options for increasing the personal income tax rate. Among them — the increase in personal income tax to 15% with lower rates of insurance contributions for employers and 21%, write “Vedomosti”
The rate of tax on income of physical persons (NDFL) in Russia can grow to be the single, but actually be progressive due to the introduction of the minimum income that is not taxable. About this option of increasing personal income tax, “Vedomosti” told five Federal officials and two experts involved in the discussion.
This question developed by the Ministry of Finance, Ministry of economic development and the Center for strategic development Alexey Kudrin. Change the personal income tax may lead to lower premiums and increase VAT, the newspaper specifies.
“Vedomosti” writes that the Finance Ministry is discussing increasing the income tax to 15%. This can be offset by the reduction from 30% to 21% rate of insurance contributions. At the same time discussed that 6-8 percentage points of personal income tax can be directed to the budget. The Federal official stressed that this is one of the options being discussed.
According to two other officials, the Ministry of economic development proposes to increase personal income tax to 15% and a deduction, and to increase VAT from 18% to 21% and reduce insurance premiums up to 21%. The representative of the Ministry noted that these proposals are “not true”. Another official stressed that “neither the government nor the President maneuvers contributions, VAT and personal income tax was not discussed”, while there is a departmental discussion.
One expert lists and other ideas from the introduction of floating rate personal income tax to provide regions the right to approve their own rates.
The representative of the Ministry of Finance said that the Ministry is against increasing the total load and stresses that the final proposals have not yet been formed. The Finance Ministry will see how these options are feasible, can be need a variety of polls.
Official financial-economic bloc warns that the experiments with the personal income tax can lead to the return of grey schemes of payment of salaries. According to the Ministry, now the informal sector of the economy can be up to 5 trillion rubles. This coincides with the calculations of the Ministry of Finance.
According to expert estimates, presented in early February at the meeting of the working group of the Economic Council under the President, raising the personal income tax rate from the current 13% to 17% would balance the budget system of Russia, wrote RBC. The calculations were prepared by employees of the Ranepa, the Gaidar Institute and Etta at the request of the CSR Alexei Kudrin. The Economic Council presented a scenario that involves increasing the income tax from 2020.