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Kremlin says no decision yet to impose personal income tax hikes on wealthy Russians

The increase of the personal income tax rate for wealthy Russians is one of the topics under discussion, according to the Kremlin spokesman
Kremlin spokesman Dmitry Peskov Vitaliy Nevar/TASS
Kremlin spokesman Dmitry Peskov
© Vitaliy Nevar/TASS

MOSCOW, June 18. /TASS/. No final decisions have yet been made to change the personal income tax rate, its increase for wealthy Russians is one of the topics under discussion, Presidential spokesman Dmitry Peskov told reporters on Thursday.

"Due to the difficult situation, there is a constant exchange of [opinions] at the expert level both in the government and in the [Presidential] administration regarding possible steps - in terms of the anti-crisis measures and in terms of measures to stimulate economic development, support the most affected sectors of the economy," he said. According to him, experts exchange views, "including the one mentioned".

"So far, no final decisions have been made, if they are adopted, we will talk about it," he said.

"So far, no final decisions have been made, if they are adopted, we will talk about it," he said, adding that in the current conditions the dialogue is very intense and time sensitive, and "decisions are made and implemented very, very quickly."

The Russian government told TASS earlier it does not discuss introduction of an increased personal income tax rate for people with high incomes.

Earlier, Forbes magazine reported with reference to its sources that amid the crisis caused by the coronavirus pandemic, the government returned to discussing the possibility of increasing tax revenues for the rich. According to the magazine, progressive scale of personal income tax, in particular, personal income tax rates of 15% for those with incomes of over 2-3 mln rubles ($28,709-43,063) a year, is allegedly being considered as one of the options.

Back in January, Mikhail Mishustin, during consultations with lawmakers when his candidacy for the post of prime minister was discussed, opposed the progressive personal income tax scale.

Thus, according to Head of the State Duma Committee on Development of Civil Society Sergey Gavrilov, Mishustin at the time called such reform ineffective and irrelevant, saying that currently in Russia there are about 20 mln people with incomes below the subsistence level, and the country virtually has no middle class.