All news

Putin proposes raising income tax to 15% for annual income over $72,825

He emphasized that not all incomes will be taxed at an increased rate, but this will give the budget about 60 bln rubles ($874.7 mln), which will be used for treatment of children with rare diseases

MOSCOW, June 23. /TASS/. Russian President Vladimir Putin proposed starting from January 1, 2021, to raise personal income tax from 13% to 15% for people with annual incomes exceeding 5 mln rubles ($72,825) per year.

"I propose the following: from January 1 of next year, change the tax rate on personal income from 13% to 15% for those who earn more than 5 mln rubles a year," he said in a televised address on Tuesday.

He emphasized that "not all income will be taxed at an increased rate, but only the part that exceeds 5 mln rubles per year", and it will give the budget about 60 bln rubles ($874.7 mln), which will be used for the treatment of children with rare diseases.

"I propose protecting these funds from any other use and targeting them for the treatment of children with severe, rare diseases, to purchase expensive medicine, equipment and rehabilitation tools, high-tech surgeries," Putin said. "Funds ... of about 60 bln annually will be an addition to the resources that are already allocated for high-tech assistance and medicine provision," he added.