PRESS: Russian govt resumes discussion of progressive taxation

MOSCOW, Aug 11 (PRIME) -- The Russian government has resumed discussion of introduction of progressive taxation, under which citizens with a high income will pay the tax of above 13%, daily Izvestia reported Thursday quoting two sources close to the financial and economic bloc of the government.

The measure will be delayed until 2020, when it could be launched as a pilot project due to social risks and difficulty of implementation. If the situation is dire, it could be launched in 2019, sources told Izvestia adding that the new rate will be tied to social payments and value added tax.

A source close to the Finance Ministry told the daily that it would be wrong to consider taxes without tying them to the economic or the budget policy, the goals and principles of which are now being formed for the mid- and long-terms. “We should switch to taxes once we have defined these priorities,” the source said.

Another source said that the budget for the next three years is under development, and there are many suggestions on its balancing, including proposals on income and value-added taxes. The Finance Ministry did not respond to Izvestia’s request for comment.

In May, Finance Minister Anton Siluanov said the ministry was not preparing any proposals to increase taxes, and Economic Development Minister Alexei Ulyukayev said that it would be unreasonable to increase the personal income tax and that the government did not discuss the measure.

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