All news

Kremlin says ‘no position yet’ on exempting minimum wage earners from income tax

Earlier, Speaker of Russia’s Federation Council Valentina Matvienko suggested that citizens who earn minimum wage should be exempt from personal income tax
Kremlin Spokesman Dmitry Peskov  Mikhail Metzel/TASS
Kremlin Spokesman Dmitry Peskov
© Mikhail Metzel/TASS

MOSCOW, December 24. /TASS/. The Russian presidential administration has not yet formulated its position on the initiative to free minimum wage earners from personal income tax, Kremlin Spokesman Dmitry Peskov told reporters.

Earlier, during her annual year-end press conference, Speaker of Russia’s Federation Council (upper house of parliament) Valentina Matvienko suggested that citizens who earn minimum wage should be exempt from personal income tax. However, she added that it is necessary to first calculate how the state could compensate for these lost tax revenues.

When asked if Kremlin has a sound position on this proposal, Peskov said: "No, we do not have any position yet."

"Apparently, this issue will require interdepartmental coordination and consideration on an expert level," he added.

In September, VTB President and Chairman Andrei Kostin also voiced a proposal to establish a minimum income level that would be exempt from income tax, and, therefore, support people with low incomes. In his opinion, this move would help Russians struggling to make ends meet obtain additional monetary prospects and contribute to boosting domestic demand.