In Russia thought to abolish personal income tax

The deputies of the LDPR faction headed by Vice-speaker Igor Lebedev and Senator Sergey Leonov on Wednesday will submit to the Duma a bill which proposes to abolish the payment of personal income tax for people with wages, does not extend beyond the two dimensions of the minimum wage. This was reported by the press service of the Deputy head of the faction, head of the Committee of the lower house of Parliament on labour and social policy Yaroslav Nilov.

The necessary changes are to be made to article 217 of the Tax code of Russia. In the explanatory material to the paper contains the data of Rosstat, according to which the number of Russian citizens with incomes below the subsistence minimum in the second quarter of 2019 amounted to 18.6 million people (12.7 percent of the population).

“From January 1, 2020, the minimum wage is set at the sum of 12 130 rubles a month, that is, under the bill, citizens who receive a salary less 24 260 rubles, may be exempt from paying personal income tax at the rate of 13%,” leads TASS words of the authors of the bill.

Such a measure, in their opinion, will stimulate consumption in the country and reduce social expenditures of the state in connection with the increase in real incomes of the poor and most vulnerable in society. In addition, the adoption of the document will reduce the costs and administration of taxes.

Earlier, as recalled by RT Prime Minister of Russia Michael Mishustin has proposed to exempt health care workers from personal income tax for the period of the pandemic.