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VLADIVOSTOK, December 22 (Itar-Tass) — The law on luxury tax should curb fiscal abuse and not to convince citizens “to go under foreign jurisdiction”, State Duma speaker Sergei Naryshkin said.
In an interview with Rossiya Channel’s One Vesti V Subbotu with Sergei Brilyov, Naryshkin said the middle stratum of society could also fall within the purview of law.
The speaker noted that the luxury tax had been discussed earlier. There were different approaches. “The law should not give an opportunity to avoid taxes. On other hand, the law should convince our citizens not to go under foreign jurisdiction,” Naryshkin said.
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 favour of introducing a sumptuary tax, “including elitist real estate and luxury cars.