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Proposed changes in Russia’s tax policy neutral for inflation — regulator

"These decisions are in line with the previously approved time-frame for the fiscal policy normalization from 2025," the Central Bank said

MOSCOW, June 7. /TASS/. The proposed combination of changes in Russia’s tax policy with simultaneous growth in spending is likely to be neutral for inflation, the Central Bank said in a press release.

"The planned changes in tax policy mean that higher budget expenditures in the coming years will be funded from higher consolidated budget revenues. These decisions are in line with the previously approved time-frame for the fiscal policy normalization from 2025. According to the Bank of Russia estimates, the proposed combination of tax changes with simultaneous growth in spending is likely to be neutral for inflation," the regulator said.

The Russian Finance Ministry said earlier that it had submitted to the government a package of amendments to the fiscal system. The State Duma, the lower house of the Russian parliament, can approve amendments as early as during the spring session, the ministry added.

In particular, the ministry suggests raising the corporate income tax from 20% to 25% since January 1, 2025. The individual income tax on dividends and deposits is planned to be set as 13% for the amount up to 2.4 mln rubles ($26,600) and 15% above this amount. A progressive scale is planned for the individual income tax.

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Central Bank of Russia Taxation

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