Monday, May 16, 2016

WSJ reported on the plans of the Russian authorities to raise taxes after the election – RBC

Photo: Lori

Russian authorities are discussing plans to change the tax system after the presidential election 2018. It is including a possible increase in VAT and the introduction of a progressive income tax

The government is considering the possibility of changing the tax system, including an increase in the income tax and value added tax (VAT), told The Wall Street Journal a few Russian officials. At the same time, they said, any changes are possible only after 2018, when the presidential election.

According to officials familiar with the situation, the government is considering the introduction of taxation progressive scale for income tax, which would mean it an increase from the current 13% for people with higher incomes. Another official said that the government is likely to maintain a flat income tax, but it will increase to 20%.

Both the interlocutor of the newspaper pointed out that the government is also likely to raise the VAT. At the same time, they stressed that any changes will take place after the presidential elections. “There is a debate about how to ensure that taxes are not excessive and do not look very strong blow to the population”, – said one of the interlocutors WSJ. In a conversation with a newspaper official said that the Russian authorities is no consensus on raising taxes and the final decision will take the political leadership of the country.

Video: RBC

«The government has promised not to raise taxes until 2018 and kept its word. After 2018, will the new government, and taxation may be revised. Such a measure, as the introduction of a progressive scale, is considered “, – said Alexander Machevsky, spokesman for the first deputy prime minister Igor Shuvalov

In early February, the newspaper” Kommersant “reported that the Ministry of Economic Development did not support. the introduction of a progressive income tax. Two RBC source in the government in late January reported that the Ministry of Economy is not included in the anti-crisis plan and a proposal to limit the rate of pay of top managers of state companies on the basis of the market level.

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