Report: Ministry mulls easing tax for Russians who save for pension

MOSCOW, Jun 26 (PRIME) -- The Finance Ministry has suggested providing deductions on the personal income tax for Russians who save money for retirement on their own, Finance Minister Anton Siluanov said in an interview to Rossiya 1 television channel broadcast late on Monday.

The ministry’s concept of individual pension capital presupposes participation in a system of voluntary pension savings that will be co-financed by employers and by the state. The ministry is to submit a bill on the new pension system to the parliament’s lower house State Duma soon.

“We will suggest relevant incentives to make it interesting for employees and employers. They will reduce the tax base of the personal income tax on the one hand, and reduce taxation of the profit taxation for employers on the other hand,” Siluanov said.

The average monthly pension payment in Russia should grow to 20,000 rubles by 2024, he said.

He also said that the ministry sees no grounds for a rapid hike or plunge of the ruble rate until the end of 2018. “The budget rule allows us not to worry about the dynamics of the ruble rate. We foresee no serious fluctuations here as there is a mechanism that allows us to keep the exchange rates of our ruble against foreign currencies stable,” he said.

(62.9497 rubles – U.S. $1)

End