Experts do not expect a large growth of revenues from personal income tax progressive – RIA Novosti

18:2321.11.2016

(updated: 18:26 21.11.2016)

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MOSCOW, Nov 21 — RIA Novosti/Prime. the Introduction of a progressive scale of personal income tax will result in a restructuring of the entire tax system and the growth of budget revenues is the main advantage of the new system — would not be very significant, according to analysts polled by RIA Novosti.

Deputy Prime Minister Olga Golodets said on Monday that the government was considering the introduction in Russia of a progressive scale of tax on income of physical persons (NDFL). “Today we are discussing about Ndfla, and I believe that to overcome poverty, release in the lower scale of income tax is one of the most important steps, we have calculated this measure, we are discussing today,” she said.

Earlier, the head of the Ministry of Finance of the Russian Federation Anton Siluanov said that the issue of the introduction of a progressive scale of tax on income of physical persons in the current difficult economic conditions put impractical, but it could be considered after 2018.

“This will result in a “fade” and many other negative consequences for the economy as a whole”, — the adviser of Institute of modern development Nikita Maslennikov.

For and against

Maslennikov believes that the idea of introducing a progressive scale of personal income tax in Russia is more minuses than pluses. “It is a strong blow to the competitiveness of our tax system, flat rate today, is a strong enough incentive, including for foreign investors to come to Russia and work here,” — emphasizes the expert.

do not agree With him Director of the Institute of strategic planning FBK Igor Nikolaev. “I refer to the introduction of a progressive scale positive — in the country more than 20 million people are below the poverty line, and the progressive scale is one of the measures that can mitigate this and other problems,” — says the expert.

“Poverty can be overcome in a thousand other ways, including having the same efficiency of social spending — almost half of the budget. And the transition to a progressive scale means changing almost the entire tax system of the country, because personal income tax is one of the basic taxes. Need to rebuild the entire system of insurance payments to extra-budgetary funds, because there is a direct correlation — in either the flat rate income tax or flat in contributions” — retorted Maslennikov.

Nikolaev underlines that while there are parts of the project, the evaluation of him to give up early. “The key is what will scale, what will be the highest bid, at what income threshold it would apply and so on — details are very important,” he explains. He predicted, based on the size of the minimum wage and the subsistence minimum and average salary in the country, 20 thousand rubles “it is possible to take as a level below which charge income tax is inappropriate.”

“Upper limit, I think it is not less than 500 thousand rubles, the salary is already possible to charge a higher rate of tax,” — said Nikolayev.

Dubious advantage

the Main advantage of the introduction of a progressive scale of taxation — increase of revenue. However, experts advise not to hope that this growth will be serious. “It will not be the growth of budget revenues, and the growth of “shadowing”. Around 20 million of our citizens with low income do not lose anything, the middle class will try to get the money in envelopes, and wealthy citizens quietly become tax residents of other countries, this whole story will end,” predicts Maslennikov.

Nikolayev agrees with him. “We have not so many people with high income in a country of large income will not. On the other hand, in terms of budget deficits, primarily regional, local, and it is important for them that even a small increase will be very significant,” — said the expert.

However, according to Maslennikov, the probability of realization of this idea is very low. “This option is very time consuming, and a set of consequences from its implementation until negative. According to the testimony of today and the draft budget for the next three years, I think this question is not on the agenda,” — said the expert.

moreover, according to Maslennikov, the statement Golodets no evidence that the government are considering the introduction of a progressive personal income tax. “The government of the other can not give an answer because the question is constantly present in the agenda, I think it’s largely the working excuse. This initiative is the “eternal disease” of the social unit, which is not very imagine how the economy works,” — said the expert.