Russia plans to overhaul tax strategy
(MENAFN) The Russian Finance Ministry has proposed a comprehensive overhaul of the country's tax system, aiming to introduce a progressive tax scale and amend the budget legislation for 2024-2026. Rossiyskaya Gazeta reported on Tuesday that these changes, developed through public discussion and parliamentary consultations, have now been submitted to the government.
Last month, Finance Minister Anton Siluanov announced plans to publicly discuss updates to the tax system. The proposed amendments will replace the current two income brackets with five, significantly altering the tax landscape for Russian workers.
Under the new system, individuals earning up to USD26,900 annually will continue to pay a 13 percent tax rate. Those with incomes between USD 26,900 and USD 56,000 will see a slight increase, paying 15 percent. A higher rate of 18 percent will apply to earnings between USD 56,000 and USD 224,200. For those earning between USD 224,200 and USD 560,600, the tax rate will be 20 percent, while the highest earners, with incomes above USD 560,600, will be taxed at 22 percent.
Siluanov emphasized that the adoption of these changes will create a stable and predictable environment for citizens, businesses, and regions, contributing to the overall economic well-being of the country. The Finance Ministry estimates that these measures will generate over USD 29 billion in revenue for the state in the next year.
The parliament is expected to pass the amendments within the next two months, with the new tax rates slated to take effect on January 1, 2025.
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