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Putin proposes to keep up flat tax rate, to introduce sumptuary tax

He said it in a State-of-the-Nation address to both houses of Russian parliament

Photo ITAR-TASS

Photo ITAR-TASS

MOSCOW, December 12 (Itar-Tass) – Russian President Vladimir Putin proposes to introduce a flat tax scale for the incomes of individuals and a sumptuary tax.

He said it Wednesday in a State-of-the-Nation address to both houses of Russian parliament.

Putin believes there is no reason for dropping the flat scale of the tax on individual incomes of physical persons /TIPI/, as the progressive taxation of individuals “won’t assure social justice.”

Progressive taxation scale “will put a new burden on the people with medium-sized revenues” and “will stimulate tax evasion and will produce a shortfall of taxes.”

“It’s important to act very cautiously in this sphere,” Putin said.

On the face of it, he spoke in favor of introducing a sumptuary tax, “including elitist real estate and luxury cars.

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