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Russia may introduce tax on luxurious consumption next year

January 30, 2012, 3:13 UTC+3
“It is important not to be too fascinated with these measures not to spread on representatives of the middle class”
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Photo ITAR-TASS

Photo ITAR-TASS

MOSCOW, January 30 (Itar-Tass) — Russian Prime Minister Vladimir Putin offers to increase tax revenues in the budget from the taxes on expensive real estate and luxurious products. The prime minister wrote so in an article published in the Vedomosti newspaper on Monday.

“We have some prospects for the growth of revenues on several trends: expensive real estate, consumption of luxurious goods, alcohol, tobacco, rental fees in those sectors, where they are underrated so far,” he believes.

“First of all, this is called an additional tax on wealth, to put it more accurately, on luxurious consumption,” the prime minister elaborated. “Main decisions should be taken this year, so that starting from next year the owners of expensive houses and cars will pay higher taxes,” he noted.

“It is important not to be too fascinated with these measures not to spread on representatives of the middle class,” Putin pointed out.

The prime minister noted that only non-resource sectors of economy cannot be concerned over higher taxes. “We will not increase the tax burden on non-resource sectors, because this contradicts all our policy of diversification in the economy,” the premier remarked.

Meanwhile, the prime minister offers “to give up once and for all the lure to adjust the taxation system to growing expenditures.” “This policy intensifies the uncertainty of the economic environment for business, so, undermining seriously the investment attractiveness of our economy,” Putin warned.

 

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