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Russia’s government not backing progressive tax — report

Russia’s Economic Development Ministry believes that switching to this system may lead to resuming the use of the so-called shady schemes of avoiding to pay the tax

© Sergey Fadeichev/TASS

MOSCOW, November 13. /TASS/. Russia’s government has refused to support a bill on re-introducing a progressive income tax drafted by A Just Russia Party, the Izvestia newspaper reported on Friday.

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Russia’s Economic Development Ministry believes that switching to this system may lead to resuming the use of the so-called shady schemes of avoiding to pay the tax, including by lowering the real salary figures, according to the newspaper.

"Now there is stability in collecting this tax what is a rather important argument in favor of preserving the current income tax scale," a ministry representative, Elena Lashkina, told the newspaper.

Russia’s 13% tax on personal incomes is one of the world’s lowest. Before the flat tax took effect in 2001, Russia had a progressive income tax ranging from 12 to 35%

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