Some Russians are planned to be exempted from tax

A bill on the abolition of personal income tax with an income of less than 204 thousand rubles a year was introduced to the State Duma . It was conceived to exempt citizens from income tax who receive 17 thousand rubles a month and for everyone else a new progressive scale is introduced, which grows depending on the size of the annual income.

The explanatory note to the document says, the implementation of the proposed taxation system will not only increase the incomes of low and medium-income groups of the population, mitigate social inequality, but also increase tax revenues to the consolidated budget of the Russian Federation.

The author of the initiative State Duma deputy from the Liberal Democratic Party Sergey Katasonov - proposed leaving the rate of 13 percent for incomes of 204 thousand rubles, for those who earn more than five million a year it will grow to 15 percent, and for incomes over 10 million 1.3 million rubles plus 25 percent from the amount exceeding 10 million rubles, and for income over 100 million rubles a year - 23.8 million rubles plus 35 percent from the amount exceeding 100 million rubles.

Since 2021, in Russia, the rates of personal income tax (PIT) for wealthy citizens, whose annual income exceeds five million rubles, have increased from 13 to 15 percent . The law provides for several exceptions. For example, the previous rate remained for the sale of personal property.

In the spring of 2020, Russian President Vladimir Putin said that the proportion of residents who are classified as middle class exceeded 70 percent. He recalled that the middle class includes people whose income is one and a half times the minimum wage (in 2019 it was 11.28 thousand rubles).